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Jan 06 2009

Text Messaging

Published by ralphio at 4:47 pm under Economy Edit This

I read today text messaging costs the companies that provide the service almost nothing. Yet I hear horror stories on a regular basis from people whose kids ran up huge charges on texting.
This is another one of those examples that makes me wonder if the free market system really works. I understand if someone is willing to pay a price for a product and a company makes tons of money providing it, it is supposed to boost the economy and represent the American way.
However, I can’t help but also think that when these companies makes huge amounts of money for nothing, they don’t let it “trickle down” into the economy. They essentially hoard it and give it to their top manager suck-ups in the form of ridiculous salaries and bonuses.
Meanwhile the folks who use these services find it increasingly difficult to pay their bills.
And when I think the bills are just hand-outs to corporations who aren’t doing anything to earn it, I smell a rat!
How does the economy benefit when a handful of people get rich while everyone else’s struggle gets worse?
My daughter is not allowed to text and we never do as a household.
Someone enlighten me if possible.
Have a good day.

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2 Responses to “Text Messaging”

  1. blognutson 06 Jan 2009 at 6:41 pm edit this

    i understand your sentiment.. and i do wish they do something about this.

    Going to the dentist for example, i found out lets say, for a denture, a dental lab will make the dentures for the dentist for only $80 .. and dentist charges patient for the denture $800! I can never understand this kind if system.

  2. ralphioon 06 Jan 2009 at 10:48 pm edit this

    I did not know that about dentists. I’m sorry but I think that kind of mark up is not productive to the aggregate economy.
    Yes, it benefits dentists, insurance carriers and their employees. However, many people go without good teeth because they can’t come up with $800 bucks.
    As far as who is going to fix it…I don’t know if it can. The government talks about it but it does not do such a good job. The only ones that can fix it are consumers but holding their money.

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