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No, you cannot. With everything manufactured at some point the marginal cost of producing a "better" model exceeds the marginal benefit the consumer realizes from purchasing the "better" product.
And that would make perfect sense if all consumer made rational decisions, but the fact of the matter is that they do not, so anything that is perceived as "better" can usually command a higher premium that it's actual improvement in utility because of that thing called "emotion" and "ego".
No, you cannot. With everything manufactured at some point the marginal cost of producing a "better" model exceeds the marginal benefit the consumer realizes from purchasing the "better" product.
Ever seen F-1 racing? They spend billions on it annually. If I make a substantially better crank than they've got now I can literally charge what I want for it. In terms of market share I could probably get $30 a crank on 1/3 of 100,000,000 cranks a year world wide. A billion dollars a year is close enough for me.
And that would make perfect sense if all consumer made rational decisions, but the fact of the matter is that they do not, so anything that is perceived as "better" can usually command a higher premium that it's actual improvement in utility because of that thing called "emotion" and "ego".
You left out better. But the recession. That is driven by too much debt. that wont change until the debt to income ratio changes.
We need higher wages so that people that are currently maxed out on debt can have some breathing room. That and the cost of insurance needs to be addressed.
that or perhaps a debt jubilee like they had in Athens every few years.
that was part of democracy after all.
and before the complainers that they need to be responsible
banks and lenders need to take responsibility themselves as well
not just debt holders.
they knew the risks but loaned it anyway so it is equally their FAULT.
yes someone else lied to you now it is your fault for trusting that person.
sue them if you want.
never been higher but because of gov guarantees you do it anyway?
yeah who's fault is that really don't say the other party, it is both of you.
and since banks + schools benefited so heavily already they should really not whine so much when students actually default on loans that cannot be defaulted on.
This couldn't be any more false. The reality is that student debt is having a substantial impact on the demand for housing. Young people are straddled with so much debt that they can no longer manage to leverage a mortgage to purchase a starter home. As a result, home ownership for the 25-35 year old demographic is quickly approaching a historical nadir. This is bad because real estate growth is closely linked to retail growth.
If they were the brightest college would have been free. I'm not even all that bright, and even I was able to get a full ride scholarship.
...
Perhaps you could elaborate on this a bit? When and where did you attend college? I know some top students who did not even come close to a full ride. One boy I know with a 4.0 and ACT of 36 got $40K to go to NYU, which barely offsets the cost of out-of-state attendance. Often, it is a specific skill or interest that gets folks scholarship and grant money or simply financial need.
My son was a model student with a 3.8 and a load of honors and AP courses. Editor-in-Chief of a substantial HS newspaper, but since we were not broke, he was only offered loans and some incentives to go to school out-of-state.
Most of his friends were honor students and I know of none who were offered free rides to go anywhere. One top student got 1 year tuition and he worked his azz off for 4 years. My niece, on the other hand received a pile of cash from the state, but her family was essentially broke. Still, no where close to a "free ride".
It does not disprove it either. People who buy new homes spend a lot of money on upkeep, improvements, furniture and whatnot. I suspect apartment dwellers do not. Companies like Home Depot and Walmart thrive when the housing market is doing well.
Ever seen F-1 racing? They spend billions on it annually. If I make a substantially better crank than they've got now I can literally charge what I want for it. In terms of market share I could probably get $30 a crank on 1/3 of 100,000,000 cranks a year world wide. A billion dollars a year is close enough for me.
It would have to be more than better, it would have to be game changing. i.e. race winning. Still, we are talking $150K engines here, and that does not necessarily translate to 100,000,000 units. Maybe a couple thousand and only if they win races.
Carbon fiber drive shafts are much better than steel. Lighter, less rotating mass, more efficient by miles. But, at $1100 a copy, you wont be seeing them in too many Honda's either.
The problem is that substantially better usually equates to substantially more expensive, which usually translate to minuscule production numbers.
I think we should declare all current student loans void and let the banking industry take the loss. Then we could replace the loans with government funding paid back by a permanent tax on all of the borrowers income from all sources forever.
Perhaps you could elaborate on this a bit? When and where did you attend college? I know some top students who did not even come close to a full ride. One boy I know with a 4.0 and ACT of 36 got $40K to go to NYU, which barely offsets the cost of out-of-state attendance. Often, it is a specific skill or interest that gets folks scholarship and grant money or simply financial need.
My son was a model student with a 3.8 and a load of honors and AP courses. Editor-in-Chief of a substantial HS newspaper, but since we were not broke, he was only offered loans and some incentives to go to school out-of-state.
Most of his friends were honor students and I know of none who were offered free rides to go anywhere. One top student got 1 year tuition and he worked his azz off for 4 years. My niece, on the other hand received a pile of cash from the state, but her family was essentially broke. Still, no where close to a "free ride".
Maryland, 2009, to any school in the Maryland system to study any major, full tuition, 5k a semester for living expenses, 500 for books, plus multiple additional merit based scholarship. Only caveat was I had to maintain a 3.5 GPA. This was not need based.
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