# Why don't the Democrats do more "marketing" (plus the viability of "propaganda" legislation)?
**URL:** https://boards.straightdope.com/t/why-dont-the-democrats-do-more-marketing-plus-the-viability-of-propaganda-legislation/841528
**Category:** Politics & Elections
**Created:** [October 9, 2019, 1:06pm UTC](https://boards.straightdope.com/t/why-dont-the-democrats-do-more-marketing-plus-the-viability-of-propaganda-legislation/841528 "2019-10-09T13:06:38Z")
**Posts on this page:** 9
**Page:** 2
### Author:  [@Little\_Nemo](https://boards.straightdope.com/u/Little_Nemo)
#### Post date: [October 10, 2019, 5:19am UTC](https://boards.straightdope.com/t/why-dont-the-democrats-do-more-marketing-plus-the-viability-of-propaganda-legislation/841528/21 "2019-10-10T05:19:58Z")
> [@Flyer](#):
>
> Or do you think that the corporations will simply watch their profits get reduced from higher taxes and not raise prices in response?
If corporations could simply raise their prices anytime they want without consequences, they would already have done it.
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### Author:  [@Thing\_Fish](https://boards.straightdope.com/u/Thing_Fish)
#### Post date: [October 10, 2019, 5:23am UTC](https://boards.straightdope.com/t/why-dont-the-democrats-do-more-marketing-plus-the-viability-of-propaganda-legislation/841528/22 "2019-10-10T05:23:09Z")
> [@Flyer](#):
>
> One outcome is that taxes on the poor will go **UP**.
>
> Or do you think that the corporations will simply watch their profits get reduced from higher taxes and not raise prices in response?
Impressive ignorance of basic economics. Prices are set by supply and demand. Corporations always charge as much as they possibly can for their products. What, you think right now they’re saying “Well, we COULD raise prices and increase our profits…but it just wouldn’t be nice, and we’re making enough money already”?
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### Author:  [@octopus](https://boards.straightdope.com/u/octopus)
#### Post date: [October 10, 2019, 5:26am UTC](https://boards.straightdope.com/t/why-dont-the-democrats-do-more-marketing-plus-the-viability-of-propaganda-legislation/841528/23 "2019-10-10T05:26:16Z")
> [@Thing\_Fish](#):
>
> Impressive ignorance of basic economics. Prices are set by supply and demand. Corporations always charge as much as they possibly can for their products. What, you think right now they’re saying “Well, we COULD raise prices and increase our profits…but it just wouldn’t be nice, and we’re making enough money already”?
Yeah, it’s not economic ignorance to think that across the board tax or wage increases are passed to the consumer. The reason that corporations don’t raise prices without limit is that there is competition. When they and the competition each have 10%, for sake of argument, more expenses then they can each raise prices without losing a competitive advantage.
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### Author:  [@Shodan](https://boards.straightdope.com/u/Shodan)
#### Post date: [October 10, 2019, 2:49pm UTC](https://boards.straightdope.com/t/why-dont-the-democrats-do-more-marketing-plus-the-viability-of-propaganda-legislation/841528/24 "2019-10-10T14:49:29Z")
> [@octopus](#):
>
> Yeah, it’s not economic ignorance to think that across the board tax or wage increases are passed to the consumer. The reason that corporations don’t raise prices without limit is that there is competition. When they and the competition each have 10%, for sake of argument, more expenses then they can each raise prices without losing a competitive advantage.
And there is always competition, from other countries’ producers, and from everything else that goes into opportunity cost.
Suppose every restaurant in the US raised its prices 10%. Obviously you can’t cross the border to eat at a restaurant, usually. But you can choose to eat out less.
Regards,
Shodan
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### Author:  [@Flyer](https://boards.straightdope.com/u/Flyer)
#### Post date: [October 11, 2019, 5:19am UTC](https://boards.straightdope.com/t/why-dont-the-democrats-do-more-marketing-plus-the-viability-of-propaganda-legislation/841528/25 "2019-10-11T05:19:42Z")
> [@Thing\_Fish](#):
>
> Impressive ignorance of basic economics. Prices are set by supply and demand. Corporations always charge as much as they possibly can for their products. What, you think right now they’re saying “Well, we COULD raise prices and increase our profits…but it just wouldn’t be nice, and we’re making enough money already”?
Prices are **ALSO** set by the cost of materials and labor needed to produce the end product.
Otherwise, companies would undercut each other until they mutually drove each other into bankruptcy. If faced with a choice of raising prices or going out of business, any major company is going to raise prices.
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### Author:  [@Flyer](https://boards.straightdope.com/u/Flyer)
#### Post date: [October 11, 2019, 5:25am UTC](https://boards.straightdope.com/t/why-dont-the-democrats-do-more-marketing-plus-the-viability-of-propaganda-legislation/841528/26 "2019-10-11T05:25:41Z")
> [@Shodan](#):
>
> And there is always competition, from other countries’ producers, and from everything else that goes into opportunity cost.
>
> Suppose every restaurant in the US raised its prices 10%. Obviously you can’t cross the border to eat at a restaurant, usually. But you can choose to eat out less.
>
> Regards,
> Shodan
And yet – contrary to your simplistic view of economics – raising prices is exactly what restaurants are doing.
> [@](#):
>
> The restaurant industry employs a large portion of minimum wage workers. It’s no surprise that 83% of survey respondents affected by minimum wage hikes reported that their labor costs rose at least 3%.
>
> Twenty-three percent responded to minimum wage hikes by not making any changes to their business.
>
> But the majority did. The most popular response — from 71% of operators — was to raise menu prices. Nearly half reworked their food and beverage options to reduce costs.
> **[Higher minimum wage means restaurants raise prices and fewer employee hours,...](https://www.cnbc.com/2019/04/10/higher-minimum-wage-means-restaurants-raise-prices-and-fewer-employee-hours-survey-finds.html)**
>
> For restaurants, minimum wage hikes usually mean higher menu prices and fewer employee hours, according to a survey released Wednesday.
> [@](#):
>
> Restaurants known for their cheap eats have been raising prices as they grapple with a marked rise in labor costs, causing some proprietors to worry that price-sensitive customers will opt to swing by the grocery store instead.
> **[Cheap eats get more expensive as a higher minimum wage forces restaurants to...](https://www.chicagotribune.com/2019/07/09/cheap-eats-get-more-expensive-as-a-higher-minimum-wage-forces-restaurants-to-raise-prices/)**
>
> Fabulous Freddie’s Italian Eatery prides itself on selling hearty Chicago classics, like house-made sausage and Italian beef, at affordable prices. But co-owner Stephanie Fitzpatrick worries …
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### Author:  [@Shodan](https://boards.straightdope.com/u/Shodan)
#### Post date: [October 11, 2019, 2:14pm UTC](https://boards.straightdope.com/t/why-dont-the-democrats-do-more-marketing-plus-the-viability-of-propaganda-legislation/841528/27 "2019-10-11T14:14:14Z")
I don’t see how this, in particular -
> [@](#):
>
> Restaurants known for their cheap eats have been raising prices as they grapple with a marked rise in labor costs, causing some proprietors to worry that price-sensitive customers will opt to swing by the grocery store instead.
is contrary to my view of economics. It appears to be saying what I did - that restaurants have to compete with their alternatives, one of which is not eating in restaurants.
Regards,
Shodan
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### Author:  [@bump](https://boards.straightdope.com/u/bump)
#### Post date: [October 11, 2019, 3:16pm UTC](https://boards.straightdope.com/t/why-dont-the-democrats-do-more-marketing-plus-the-viability-of-propaganda-legislation/841528/28 "2019-10-11T15:16:01Z")
> [@Flyer](#):
>
> Prices are **ALSO** set by the cost of materials and labor needed to produce the end product.
>
> Otherwise, companies would undercut each other until they mutually drove each other into bankruptcy. If faced with a choice of raising prices or going out of business, any major company is going to raise prices.
Generally speaking, cost of goods sold isn’t really a big input into pricing decisions, except as a floor below which things can’t be priced and break even. Most of the time though, the price is WAY above that amount.
And companies do engage in exactly what you talk about, when they’re trying to compete on price. They continually undercut each other, until their prices are a hair’s breadth above their costs. At which point, stuff like supply chain efficiencies, economies of scale, etc… really start to show, as they affect those costs a lot.
But most companies DON’T compete on price, because the problem is that if your value proposition is that you’re the lowest-cost vendor, then you HAVE to be the lowest cost vendor if you hope to sell to people whose primary goal is to get the lowest price. That’s how those races to the bottom start.
So most companies compete by trying to differentiate themselves from their competition- features, service, location, etc… This both allows them to hopefully set their own price point and/or market their products/services to different market segments who presumably might be willing to pay more. At it’s core, it’s a fundamental recognition that one guy may be willing to buy a Kia because it’s an inexpensive car, but others are willing to spend a LOT of money to buy a Rolls Royce.
And **Shodan’s** right- price-sensitivity among consumers is affected not only by price, but also by subsititutes, which are alternatives not necessarily within the exact category that’s being viewed by price.
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### Author:  [@KidCharlemagne](https://boards.straightdope.com/u/KidCharlemagne)
#### Post date: [October 13, 2019, 1:30pm UTC](https://boards.straightdope.com/t/why-dont-the-democrats-do-more-marketing-plus-the-viability-of-propaganda-legislation/841528/29 "2019-10-13T13:30:23Z")
> [@Flyer](#):
>
> One outcome is that taxes on the poor will go **UP**.
>
> Or do you think that the corporations will simply watch their profits get reduced from higher taxes and not raise prices in response?
They’d probably just do less stock buy-backs at this point. But more importantly, the legislation wouldn’t pass. The point is the optics. Everyone in this thread is talking about how the Republicans will spin something. “Spin” is essential marketing. It’s time we do some of our own.
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