Why things get cheaper but you spend more
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Ever wonder why things are getting cheaper but you never seem to have more money?
The New York Times reports that the FCC “is preparing to impose significant new regulations to open the cable television market to independent programmers and rival video services after determining that cable companies have become too dominant in the industry, senior commission officials said…Officials say the finding could lead to more diverse programs; consumer groups say it could also lead to lower rates.”
Here’s what I predict will happen: Cable rates will fall and new options will become available — meaning we’ll actually pay more on total services. This is a similar pattern for food, Internet, cellphone services, clothes, and pretty much anything you can think of. While things are getting cheaper and quality is going up, there’s just more stuff to buy. I wrote about this earlier in Guess How Much Your Subscriptions Cost?
Think about it when planning.
Btw, the best three books on this topic are:
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