Monday, December 09, 2013

I'M UNCERTAIN WHETHER OR NOT FATS LIMBAUGH WAS AWARE...

that this argument was previously made by F. A. Hayek to justify extreme wealth:
The reason that the average American -- I'm not crazy about that term -- but the reason why a 32-inch flat-screen TV is affordable for the vast majority of people is that enough rich people paid $10,000 for it when it came out to get enough of them made so that the price would come down.  The manufacturers of all these gizmos have to charge high prices at first to even hope to recoup all the R&D and manufacturing and marketing costs, and the rich are there to pay for it.  They're the first ones. If they really want something they'll lay down whatever, 10 grand, for a flat screen, and it won't be long before that flat screen is $1,200.

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