AS I WAS WRITING MY LAST BLOG POST, A TOPIC THAT I RAN INTO WHILE WORKING IN COLOMBIA FOR THE ELASTIC MIND PROJECT ELASTICMINDPROJECT.ORG WHICH I CO-FOUNDED WITH FANIA CASTRO KEPT COMING UP (AND FOR ALL MY COLOMBIAN FRIENDS who ARE MANY, I AM NOT PICKING ON COLOMBIA…THIS HAPPENS IN MANY PLACES). THAT ISSUE WAS, AS THE TITLE NOTES, THE HIGH COST OF THE CHEAPER ECONOMY. SO IN KEEPING WITH THE ECONOMIC STRAIN OF THE LAST POST I THOUGHT I WOULD CONTINUE ON, DELVE A BIT DEEPER INTO HOW THIS CONCEPT EFFECTS PHOTOGRAPHERS AND FRANKLY ALL BUSINESS OWNERS.
So what is the problem with this you ask? I love cheaper products you say. Well as Henry Ford most famously said: “Cars don’t buy themselves”. Economy and the alleviation of poverty, for example, is on one measure driven by the movement of money. The idea of money is not to hoard vast qualities but to save a bit a move the rest, the proportion of its movement is paralleled by the movement of the economy. In an elegant example a client pays for a service slightly above market rates, the company or person receiving that income spends it on yet another service and so on. If on the other hand, a client is just looking for a cheaper rate, there will be little to no money nor the positive physiology for the service provider to move that money. We move into a self-reinforcing environment driven by scarcity, the scarcity of income. This reverberates until only required products are being purchased, food etc.. The system moves into a spiral in which by every passing year the populous gets progressively less able to move money in meaningful and substantial ways. They might not be “poorer” but less able to move the money. Therefore as stated above prices need to come down with the retail suppliers squeezing wholesale suppliers and so on. Somewhere in that chain are consumers, as workers who untimely get fewer pay raises / less wages.