RSperfect t1_j8nzx1o wrote
Apple getting into so many deferred payment schemes is a sign that something is deeply wrong with our economy.
lilhotdog t1_j8o1zox wrote
Our consumer economy runs on credit, full stop. There's been something deeply wrong for about 60 years at this point.
jadondrew t1_j8o5tu3 wrote
It’s almost like something went very wrong in the 1970s when wages stopped rising with productivity and instead a class of people became extraordinarily rich.
Willinton06 t1_j8o7td2 wrote
The extraordinarily rich became extraordinarily richer
Penguin236 t1_j8pxm1s wrote
What are you talking about? Extraordinarily rich people were around long before the 70s. Just look at people like Rockefeller and Carnegie. In today's money, they would've been the richest people in the world, even more so than the likes of Musk and Bezos.
jadondrew t1_j8uqrxh wrote
Between 1978 and present, CEO compensation has risen 1,460%. Worker compensation has risen 18%. That is what I’m talking about. Cherry picking a few winners does not diminish overall trends.
blorgon7211 t1_j8o9mzd wrote
this credit culture is rising in india too, ppl are buying phones worth 2 months of their salary.
though buying especially relatively cheap items like phones on credit is way more prevalent in america
Dal3488 t1_j8pea6a wrote
This is true. Without credit now days, you won’t get far anywhere
TheElderCouncil t1_j8qqioo wrote
You mean getting people who can’t afford things and put them in debt?
thatbakedpotato t1_j8pj8wa wrote
If you have the money to afford it, BNPL systems are actually the smartest way of buying something. The danger is that it allows people who think they can afford it to go beyond their means, but BNPL in itself is not a bad thing.
monty_burns t1_j8rlosm wrote
Interesting. Mind elaborating on being “the smartest way of buying something”
hawkiron t1_j8ruixt wrote
As a really basic example, say you have $1200 and you want to buy something that costs $1200. You can either pay $1200 upfront, or you can pay it in $100 no interest installments over a year. If you choose to pay in installments, you can leave the rest of the money in a high-yield savings account and collect interest on it over that year, rather than handing it over right away. This means you can buy the thing you want without sacrificing the full opportunity cost of the money over the period.
Apple loses the opportunity value of getting that money upfront, but they guarantee you are committed to the purchase regardless. Further, it also allows them to secure future earnings from people who couldn't immediately afford a large purchase, like someone who doesn't have $1200 upfront, but has $100 disposable income a month. That person may have decided to forego a purchase altogether or buy something cheaper if not for the option.
linerstank t1_j8rwgd5 wrote
If there is 0% interest on the purchase, installments is always better than upfront. Because you can invest and play around with the money in the installment time frame and potentially make some money off of your “principal.”
monty_burns t1_j8rx47p wrote
yup. Got it. Yea, it’s great for some for sure. Credit cards have been using 0% introductory rates to sucker the less financially savvy for years
esp211 t1_j8o3oc3 wrote
Entire country is based on credit and debt.
Diegobyte t1_j8o7y88 wrote
Nah they just see it’s profitable so why should they let someone else get all the profit
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