The free market is making available low-cost Christmas gifts.
Here is an example: a video game that went from $50 to $15 in 7 days. A price war broke out. Amazon drove down the price. Walmart and Target followed suit.
It pays to shop online. It pays to wait to buy presents.
There is no place to hide any longer. The big stores are cutting prices online. This means that people who shop online have a huge advantage over those who shop in the stores. This rewards digitally savvy people.
The New York Times reports:
Retail price wars online have entered a new era of speed and precision, creating a confusing landscape for shoppers in which prices leap and plummet on short notice. In the old days, merchants sent employees into competitors’ stores to check on pricing, and days later “sale” signs reflected new markdowns. Now, sophisticated computer programs accomplish the same goal online within hours, and even minutes.
Price competition is the free market’s magnificent gift to customers. High prices based on customer ignorance is becoming a thing of the past.
This will squeeze profit margins. Hooray!
This will give customers more wealth after taxes. Hooray!
This will hurt retailers that cannot compete. Not my problem!
The free market is the customer’s friend. When it comes to making investors rich or customers rich, the free market does the latter first.