Private equity, and computers, optimized all the profits which drove profit quality down. We all have lower quality products to enrich a few finance individuals

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is_true 5 hours ago | parent | next [-]

Optimization is gonna kill us all in the end.

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infecto 6 hours ago | parent | prev [-]

Or more likely consumers vote with their dollar and cost matters over quality. PE is just a bad scape goat, there are obvious outliers but largely companies make products that consumers want.

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tsimionescu 6 hours ago | parent | next [-]

Companies are incentivized to sell the worse, most expensive version of a product that they can convince someone to buy. Many companies sell with huge margins, meaning there is significant slack to allow quality to increase for the current price point - there just isn't enough competition to matter. Many manufacturing companies also have complex supply chains, making this problem worse as everyone along the chain tries to maximize their own margin.

It's not at all rare for a company to sell a quality product at a low margin for some years, building up a reputation, and then start decreasing quality to increase profitability once the quality branding is established.

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infecto 6 hours ago | parent [-]

Of course, optimal companies maximize for margin. Buyers have their own optimization mental model and maybe is surprising but a vast majority are thinking mostly on cost. Buyers and sellers do a dance and in the perfect long run you hit the optimal balance.

Consumers/buyers still play a large role in this, it is easier to put all the blame on PE or Big business.

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tsimionescu 6 hours ago | parent [-]

This is the conventional thinking, but it ignores a huge factor - marketing. The major function of the gigantic advertising industry is to deceive consumers about the real qualities of a product, leaving price as the only only signal that they can detect through the noise, in most cases.

And advertising works in multiple ways to promote slop. Sometimes, it is directly by marketing bad products as cheap but high quality bargains. Sometimes it is, as I said, by using previous high quality products to sell low quality ones at the same prices. Sometimes it works by creating a huge pressure to consume more (such as the pressure on fashion trends), wiping out any care about durability (if it's considered poor taste to wear the same T-shirt two seasons in a row, why pwuld you buy a durable T-shirt?). Sometimes it works by mudding the waters, making consumers distrust any reviews that praise the quality of a product, leaving price and directly visible looks as the only signals that rational consumers can base their decision on.

So, overall, the blame for this state of affairs lies far more with the way the modern market was designed, than with consumers specifically.

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infecto 6 hours ago | parent [-]

Feel free to blame whoever you want.

It’s a dance between consumers and business. Sure some markets are heavily influenced by ads or simply what’s in fashion but ultimately it takes two to tango.

	▲	tsimionescu 5 hours ago \| parent [-]
		[dead]

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panarchy 5 hours ago | parent | prev [-]

Or more likely consumers aren't paid enough to buy quality.

	▲	infecto 3 hours ago \| parent [-]
		How do you come to that conclusion? It is certainly a luxury that not everyone can afford but for the average consumer in America it’s possible but folks still opt out.