We have always believed that selling things can be sold quickly just by being cheaper. So often it is difficult for you to raise the price when the product is sold at the beginning, because we always think that the product is worth so much money and may be sold at a low price if it cannot be sold.
However, some merchants have no cheap things since they learned this story, and they cannot sell them at a loss even if they are cheap. I would rather throw it away than sell it. That is the milk pouring incident. In 1929, the US economy suffered a great depression and there was a milk pouring incident. Because the price of milk had fallen to the bottom at that time, but no one came to buy it. In order to reduce losses, capitalists could only pour out the milk
.
Many people will wonder why it cannot be given to the poor. This is the right idea. The rich people think so. If they are given away for free in the end, why would I buy it? So no one bought it. The same is true for
bakeries, and the same is true for selling flowers on New Year’s Eve.
So, why has the current housing prices not dropped much? It only lowers the purchase conditions. There are 10% down payments, and even zero down payments. So, if the housing prices are really reduced, otherwise no one will buy them in the future. Why do some real estate companies not reduce prices when they go bankrupt? This is one of the reasons:
If you are a working class, think about whether you can afford to pay back the price in the next 30 years. It doesn’t matter if you can’t afford it, because you can still inherit and repay the loan, so don’t worry about your descendants. Your life is for yourself, not for face, but now many people will really talk about you behind your back.
