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Cake day: June 4th, 2023

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  • herrcaptain@lemmy.catoMicroblog Memes@lemmy.worldPrice gouging
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    6 months ago

    Exactly! In economics there’s a concept called price elasticity (Incorporating two related principles, elasticity of supply and elasticity of demand).

    Elasticity of demand is the more relevant one here. Products with elastic demand are those that consumers are quicker to change their buying habits around. For instance, luxury items. Products with inelastic demand are generally actual necessities (like groceries), where you’re gonna have to buy them one way or another. You can look to alternate suppliers with better prices, but when they’re all gouging you have no choice but to buy from one of them.

    In the long run this can indirectly be forced to change. If it gets bad enough that people en-mass started growing their own food at home, this could cause the suppliers to reconsider their prices. (I know that’s a far-fetched example. I’m just using it to broadly illustrate my point.)



  • I suppose you may indeed be correct. I always assumed not as it’s not like they give you a donation receipt like when you directly donate to a charity. Now that I think of it, however, the donation itself would be itemized on the receipt and could therefore be used as proof in a personal audit. I just never really considered it as I just donate like 2 bucks here or there via this means.

    I suppose this also might vary in different jurisdictions.

    End of story, I’m willing to admit that I may have been misinformed (AKA wrong) myself.


  • herrcaptain@lemmy.catoMicroblog Memes@lemmy.worldWe're barely hanging on here.
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    6 months ago

    I think you’re being given an incomplete picture here. It is a tax write off but it’s balanced out by the money they collect. So if they collect 100K in donations, they report that as “income” but it’s immediately written off as a charitable donation. Thus, they don’t directly get anything out of it as it’s functionally a net-zero transaction as far as their taxes are concerned. In fact, it probably ends up costing them a bit once you account for the hours spent by some admin or marketing team getting the program set up and administered.

    Obviously they are getting something out of it: As others here have said, they get to brag about all the money they collected for charity. It’s possible these big corps also have some convoluted accounting practices that make this further advantageous but on the face of things that’s not how it works.