Corporations Tailoring Product Lines To Reflect Growing Income Inequality

[marmar]

from HuffPost:



As the American economy struggles to shake off a torpor that threatens to drag the country back into recession, the gap continues to grow between the nation's richest citizens and everybody else.

The economy is in evident peril, with unemployment high, wages falling, the housing market treading water and growth so slow as to be nearly imperceptible. Yet the rich are doing just fine. Some statistics make clear the size of America's affluence disparity: As of 2010, the richest 20 percent of the U.S. population control 84 percent of the wealth. And the 400 richest Americans have a higher net worth than the full bottom 50 percent of households.

As the wealthy continue to accrue capital -- helped by policies like a low tax on profits from stock and real estate sales -- and the less well-off classes try to make do in a pitiless economic climate, corporations appear to be finally recognizing the reality of the prosperity gap, and tailoring their product lines accordingly. Manufacturers like Procter & Gamble, the household-goods giant responsible for everything from Charmin and Old Spice to Tide, are concentrating their efforts on luxury and bargain items, putting less emphasis on products aimed at the middle class, the Wall Street Journal reports.

The erosion of middle-market product lines reflects a trend where economic pressures are making it increasingly harder for Americans to maintain a traditional middle-class existence. Jobs are less secure, home ownership rates are falling and a college education is not the guarantee of financial stability that it once was. A recent study from the Pew Charitable Trusts found that more than a quarter of Americans who were raised in middle-class families in the late 1970s had fallen into the lower-earning classes by 2006. .............(more)

The complete piece is at: http://www.huffingtonpost.com/2011/09/12/income-inequality_n_958472.html

[Supersedeas]

1. k&r

[RKP5637]

2. We're in a national crisis, but yet IMO many things are business as usual. As time

progresses the ripple effect will take this to the wealthiest, because few societies survive perpetually in such a skewed wealth distribution.

[dtexdem]

3. A plutonomy never works.

Market it and in it as they wish, it will fail for them, too.

[femrap]

4. Finally my theory

is proven. I've noticed this phenomenon for a long time now. For example, coffee pots. They're either $25 or $100. And try to find a Braun....only made for the rich these days at $250. I pray my Braun keeps perking along.

I see it in most items these days. There is no longer a product for the Middle Class because there is NOT going to be a middle class anymore.

F*cking Banksters/TPTB. May they experience the meaning of hunger some day.

Thanks for posting. Now people can't call me crazy anymore when I bring up my shopping experiences.

[Avalux]

7. It's very evident - I've noticed it too. n/t

[RKP5637]

9. I've noticed similar, this significant gap in the pricing structure. The other thing I've noticed

is those times when one wants to buy a quality product they often aren't available. Most items today are cheap junk, even at higher prices. ... not all things, but many IMO. We've become a cheap throwaway society to feed the consumption machine and greedy profiteers. It's a horrible recipe for the future of humanity.

I'm not sure where/how/when it's all going to change/end, but my gut feel is it's going to get a lot worse before it gets better.

[femrap]

10. Yes...I know

what you mean about the 'throwaway society.' And engineers go to work everyday to figure out new ways for 'planned obsolescence' and 'planned failure' of their products.

I rarely buy anything...unless something breaks and I can't get it fixed. I still have a TV with the big tube.

Years ago, I had a feeling this was going to happen (when manufacturing started moving to China) so I bought 3 good coffee pots, 3 good toasters, lots of Xmas jewelry, greeting cards, socks, shoes....Some of my friends and relatives thought I was nuts, but I knew this crap coming from China would not be nice. I am a blessed shopper. I study the market and usually get everything at least 75% off.

I don't shop much these days. And I don't buy anything made in China unless I absolutely have to....fans and lighters for the fireplace, for example.

I hate the shoes made in China. And I miss seeing Italian shoes....but I have plenty. Italians have a great sense of crafts(wo)manship and beauty. I hate to see the country suffering....along with us, I guess.

The Audacity of Austerity. The Banksters must be jailed! Maybe someday Mother Nature will end globalization!

Yes, it will get worse before it gets better....I hope we go back to living on a local and sustainable level.

[kelly1mm]

11. If you really are looking for a Braun coffee maker, try ebay. Checking

10+ cup makers only, the prices with shipping for new Braun coffee makers range from $53 - $113, and that includes shipping. Less than 1/2 of what you quoted.

[femrap]

12. I had looked on-line....

on the Braun site itself. Braun made only coffeemakers for the European market (220 volt, I think) in the lower price range. The high priced ones were for the US (110) market.

I've never used ebay. But that's a good idea. Thanks.

[WinkyDink]

14. And "women's magazines" run "bargain tips" about Dollar Stores

[femrap]

15. I don't read what

you refer to as women's magazines...I'm more of a Harper's, Newsweek, Forbes, Consumer Reports reader.

I've found the $ Stores to be quite the rip-off.

What's with all the " " " "? You gotta a problem?

[coalition_unwilling]

5. Please remember Lenin's witticism that 'capitalists will sell us

the rope with which to hang them'.

[Rex]

6. We all knew Reaganomics would destroy the middle class.

Sad that we are to this point. Greed will kill us all off for slave wages. Then we will all stuggle against each other for bread and water.

[Manifestor_of_Light]

8. The article gave NO information about different marketing approaches.

It was worthless.

[Bozita]

13. Charmin "Basic" appeared a few months ago at my local Kroger

Evidently regular Charmin is for the fat asses.