market economy 'unfair to poor'

the uk's national consumer council (ncc) has just released a report claiming that the impoverished pay more for their goods than do the well-healed. they claim that:

The poor pay more because life on a cash budget is more expensive. You pay more if you can't bulk buy or afford a weekly shop. And if you can't get around because of a disability or limited transport, you can't shop around for the best deal.

although intuitively it makes sense that those with the luxury to bargain-hunt will get better prices, it may not play out that way in most cases. from my experience, few people actually go to several grocery stores to compare the price of asparagus. on large purchases such as cars and appliances wealthier consumers may actually spend the time and money to shop around, but on general items i doubt they do – they may have the time but value it more than the extra dollar they’ll save.
even when one wants to comparison-shop, there are many ways to do so other than physically driving from one store to the next, something many cannot do. with everyday items as well as larger ones, prices are listed in a number of publications accessible to both the rich and poor alike, and many listings come directly to those with mailboxes or doorsteps. prices are also a phone call or internet café away, and word of mouth is another important method to discovering the cheapest vendors.
even in cases where the very poor and very rich pay different prices for the same goods, what is a “fair” price is determined solely by the amount one is willing to pay, and that is perhaps a different price for different classes of people. we live our lives by comparison; because one person is getting a better deal, others feel cheated, but in reality if you’re paying what it’s worth to you, you’re getting the best deal possible.

Complex mobile phone and utility price packages are also cited as being particularly difficult for many poorer Britons to understand.

i’m not quite sure what the ncc’s prescription is. complex matters, as many financial affairs are, are by definition difficult to understand. first, it’s insulting to equate being poor with being unable (or unwilling) to understand complex matters. second, i hate leaving this with “well, that just life” but it’s true; those unable to comprehend the complexities of the world will pay more, and likely that’s the least of their troubles.

Labels: economics, well being