Meditations and Learnings

Meditations and Learnings

Why Prices Are Higher in Low-Income Neighbourhoods

Prices are usually higher in low-income neighbourhoods. This premium is not, as some would have you believe, due to ‘greed’. It is incorrect to apply intentions to the systemic events of an economy. Low-income neighbourhoods usually suffer from higher crime rates and property damage, making the delivery of goods more expensive. The inefficiencies of small transactions also increased the price of doing business in low-income areas. The labour involved in completing fifty $2 transactions will cost more than a single $100 transaction.