In July 2013, I wrote a publish on EconLog titled “The Economics of Self-Imposed Value Ceilings.” The working example was the Costco sizzling canine. I identified that by preserving the value of a sizzling canine and a soda with free refills at $1.50, Costco over time, to cut back losses, lowered the standard of the product. I may need been fallacious in saying that the brand new sizzling canine is inferior to the outdated Hebrew Nationwide model. The model that Costco shifted to continues to be fairly good.
However I used to be not fallacious in saying that Costco give up letting the client flip a crank that yielded sauerkraut and as a substitute put sauerkraut behind the counter.
Two additional adjustments have occurred, one which I seen within the final 12 months or two and one which I seen at this time. Sooner or later within the final 12 months or two, Costco discontinued the behind-the-counter sauerkraut.
In the present day, I seen one other change. Costco has discontinued the onions that you simply used to get by turning the crank. So now all you get is mustard, ketchup, and relish.
In case you’re questioning, after all I’m not advocating {that a} authorities company regulate Costco’s selections about sizzling canines. I’m merely stating predictable penalties of value freezes in a time of inflation even when the freezes are self-imposed.
