People comparing new & old bills from food outlets like McDonalds and Sangeetha veg restaurants in social media claiming they increased the prices of menu items since GST has been reduced. Let's analyze what made them increase the price.
Marginal Revolution, changed the way of pricing since 1900
Before 1900, business people used to fix the price which they incurred during the production of goods with little additional pricing as profit. They took profits, not a greater number. This is not the case now. After 1900, they started fixing prices based on how much the consumer can bear. Consumer demand that eventually determines prices. They try to charge the highest price which consumer will be ready to pay if stated in simple words. So no surprise that business doesn’t care to lower prices when their costs fall, just the way consumers don’t care to pay more when business cost rise.
So GST rate cut has no benefits for consumers?
It definitely has. When tax is reduced, it encourages business to invest more in the product as they earn more profits. This leads to increase in the supply of product on market - leads to lower prices for consumers, but it takes time. But creating bodies like NAA (National Anti-Profiteering Authority) by the center to check on huge profits by business, killing the incentive to invest in manufacturing of goods for business will only have counterproductive results.
Closing with my view
Creating NAA will definitely have an impact and help consumers but one should also think about the pricing we are paying for. If people are ready to pay when there is an increase in price from what they can afford, it encourages market and gives a different pricing to that product, badly affecting other people’s who can’t concede with new pricing. GST pricing should have been planned well before implementing, which would have never brought this issue when tax rates are laid perfectly.
Reference: PRASHANTH PERUMAL J (The Hindu, dated 20 Nov 2017)
This. This beautiful, gorgeous gorge. One single moment of sunlight slanting through raindrops, casting a prism over the Columbia River. This place is sacred to many Oregonians and holds national history from the Chinook tribes to Lewis and Clark, and beyond. Wildfires, timber logging, hydroelectric dams, tourism, and power plants threaten the health of these national scenic areas. Together we can choose a conscious future, carefully and sustainably powering our own habitats - allowing other environments to thrive naturally. Hey bears, you're ok 👌 with us. Hey trees, bees, turtles and beavers, eagles and salmon and ground-cover clovers. Fresh air and rain, please do maintain - your heavenly status will always remain. #columbiarivergorge #oregon #oregonstateparks #rainbow #clouds #river #heaven #noimpact #environment #photography #rain #love (at Portland Women's Forum State Scenic Viewpoint)
Sweaty hilly 80's rock spin class today! Sweating felt amazing since I'm really limited to spin and yoga #spinclasses #spin #sweatfest #Wednesdayspin #backpain #noimpact
After a few days I realized I did not use to do electronic device and stay connected. So I somehow change my way of acting to stay in the subject of Green Week. I decide to turn off all the lights when I leave a room, and even one that does not use a general way.
The short showers is really complicated to do but it's only for three weeks .. Otherwise I recycle as much as possible and I recycle my waste even those of other children living at the residence with me.
When I started this journey I thought my biggest chore would be replacing bad habits and learning how to make stuff my self. BUT I am slowly realizing there is tons of hidden trash! Packaging, packaging, packaging!!!!I buy organic rice crackers... they come in a plastic package. I bought organic cake mix; recyclable cardboard on the outside.... plastic on the inside. I like to take EmergenceC during winter... plastic foil. Organic rice pancake...plastic.
In February I am going to change three things, for good. I think the easiest step will be toothpaste, tampons, making my own laundry detergent. We will see how that goes... hahaha! This is super hard, and totally worth it.
Okay, so i finally got over myself and realized these embarrassing feelings the shame of how much trash I make is THE POINT. I know I was going to go one year just looking at my trash and finding alternatives but now I feel like I could start tomorrow. I guess people need to figure out what kind of person they are and want to be. Can you just snatch off the band-aid, dive in the pool or do you peel it off and dip one toe in the water.
I like to think I am a snatch off kinda girl and for a lot of things I am but the is hard.
How am I going to clean my floors?
What about cat food?
P.s I have an amazing cat name The Captain, she wonderful and I love her. The Captain is my best friend.
Next monday I am going to have a list of things to make and stop buying in February! Perhaps thats how I will do it! Each month take out something and replace it with something else! BOOM!!!! Done!