What is the point of automation and mass production when the prices of certain basic staples keeps going up? You are really going to tell me we can’t get a loaf of bread down to 1 dollar?
Companies pursue horizontal integration for synergies like economies of scale or cost savings in marketing, R&D, production, and distribution. This can make manufacturing multiple products more cost-effective. Tiers of sale under a single distributor (economy and generic versus luxury or specialty) also afford the corporate entity to scale price to income and maximize revenue per customer.
The “organic” label is a good example of this in practice. Add a 50% mark-up on bananas by telling people the “regular” bananas are unsafe. Anyone who can’t tolerate the professed risk (typically people with more disposable income) end up paying extra to the same distributor for what is functionally the same product sold at a premium price.
Automation and Mass Production are tools of monopolization in the capitalist economic model. The efficiencies of production are used to lock competitors out of the market, not to improve the consumer-experienced efficiency of production, distribution, or sale.
The short answer is that any benefit arising from the decrease in manufacturing costs through technology, scaling, etc. is considered the property of the manufacturer. You though those cost savings should be passed on to the customer. They disagree. Perhaps an even split? NO.
A dollar might be a little optimistic today - I say this because a basic loaf of bread I bake at home, which I do a lot, costs me around $1.10. Of course a bakery buys bulk ingredients at lower cost, but they also have to pay employees and I don’t.
I’ve seen several basic loaves for like $1.19 recently. They’re starting to catch on to the fact that there’s not much left to extract, and a hungry man is an angry man.
What is the point of automation and mass production when the prices of certain basic staples keeps going up? You are really going to tell me we can’t get a loaf of bread down to 1 dollar?
Profits for the few, enslavement for the rest.
It’s very hard to enslave people who are free and have their needs met.
Capitalism can not exist with the violent deprivation of basic human needs.
Horizontal Integration Explained
Companies pursue horizontal integration for synergies like economies of scale or cost savings in marketing, R&D, production, and distribution. This can make manufacturing multiple products more cost-effective. Tiers of sale under a single distributor (economy and generic versus luxury or specialty) also afford the corporate entity to scale price to income and maximize revenue per customer.
The “organic” label is a good example of this in practice. Add a 50% mark-up on bananas by telling people the “regular” bananas are unsafe. Anyone who can’t tolerate the professed risk (typically people with more disposable income) end up paying extra to the same distributor for what is functionally the same product sold at a premium price.
Automation and Mass Production are tools of monopolization in the capitalist economic model. The efficiencies of production are used to lock competitors out of the market, not to improve the consumer-experienced efficiency of production, distribution, or sale.
Thanks for the post and the link. Great explanation.
The short answer is that any benefit arising from the decrease in manufacturing costs through technology, scaling, etc. is considered the property of the manufacturer. You though those cost savings should be passed on to the customer. They disagree. Perhaps an even split? NO.
I mean, in Holland a loaf of bread is like €1…
https://www.ah.nl/producten/product/wi589882
That would be actual bread. They talk about the sugar filled kind.
A dollar might be a little optimistic today - I say this because a basic loaf of bread I bake at home, which I do a lot, costs me around $1.10. Of course a bakery buys bulk ingredients at lower cost, but they also have to pay employees and I don’t.
I’ve seen several basic loaves for like $1.19 recently. They’re starting to catch on to the fact that there’s not much left to extract, and a hungry man is an angry man.
I always buy the Aldi wheat bread at $1.29/ loaf.
Remember that a portion of the sale of every loaf of bread goes to make the stock-holder douchebags richer.