I have observed that otherwise rational people buy coffee at Starbucks for $5.00 +/-. Is this a reality check?

Question

Some persons within our society, myself included, would consider such behavior insane. Some would say that even to pay in excess of $5.00 for a lunchtime sandwich is bordering on the frivolous.

While I am aware that the once mighty dollar (formerly backed by gold and silver and previously and correctly referred to as money) has been replaced with something more liken to Monopoly "money", i.e. FRN's (Federal Reserve Notes - not money, but debt instruments issued against the absurd spending habits of those occupying the chambers of higher government in past ages), I am aghast at the levels of inflation that have sapped the strength of our once robust economy via NAFTA's outsourcing strategies to save American companies from the ever growing greed of labor unions that threaten their very existence.

Our penalty in pursuing a profit margin acceptable to the share holders is that we no longer produce much that still has the label MADE IN AMERICA on it. THAT, will be our final undoing.

Answer 1

I agree. Crazy, isn't it?

There are long lines at the Starbucks inside my grocery store. I try not to stare, but it's like a train wreck -- you have to look!

I see these people willingly spending $2000 a year on coffee? Actually it might be higher, I've heard many order 2-3 a day!

What I wonder most is what other areas of their lives are they equally irrational and irresponsible?

Devoid of logic or self control, I imagine a ton of maxed out credit cards in their wallet.

Answer 2

It's a luxury. While I enjoy an occassional Starbucks, my big downfall is eating out. Until recently, I used to spend anywhere from $13 to $25 for lunch every day. Crazy ain't it?

Why are you complaining about the money? If you don't like it, take your money and buy gold and silver with it. If the money is inflating so much, then why is gold and silver no more valuable (in exchange for dollars) than it was 25 years ago?

Inflation exists, but please also notice that household income for all income levels has been rising faster then inflation for many years (with occassional dips). That means household buying power has been increasing all that time.

Outsourcing is not necessarily a bad thing. Economies change. Why should a company in the USA pay $15/hr to a low skilled manufacturing worker, when someone in Malaysia will do the same job for $2/day? Would you want to be paying 5 times as much for a garden hose or an article of clothing?

A hundred years ago, many were employed on the farm, or caring for horses, or bringing ice into the city from far away. Now we no longer need those jobs. Today, manufacturing is no longer a high value job, because anyone can do it. So we need to focus on more high value work, based on providing knowledge or unique services.

It's not about the evil corporations outsourcing their work. It's about the world growing and changing and our need to adapt to it.

Answer 3

It seems that you have had economics 101, which is enough to make you dangerous and less then understanding. But none the less is you earn 18,000 a year then maybe 5 dollars a day on coffee is an extreme. Some 10% of your income, but if you earn 180,000, then it is not even one percent. One percent of income to find something that a person enjoys does not sound crazy to me. I spend more then that on insurance and I don't enjoy that one bit. So it is all how you look at it, and from where you come.
B

Answer 4

$5 for a coffee is insane. At least it is for me. But alas we live in a world wher eimage and fitting in plays a big part of many peoples lives. LA for example, full of rich folks all decked out with their designer clothes, nice cars and expensive jewellery and you see the not so well off trying to mimick them instead of saving their money they end up buying expensive SUV's and nice clothes but they live in a 1 bedroom dump of an apartment.

Answer 5

Basic consumer theory - these individuals obviously derive a much higher utility from starbucks coffee than you do. It's their money and they obviously gain pleasure from it.

Myself..I'd rather pay $1.40 for an extra large double-double from Tim Horton's (former Canadian coffee chain now owned by Wendy's).

Answer 6

You ever think it's the one frivolous thing we like to spoil ourselves with? The other thing that's going on is that coffee shops have replaced restaurants for business meetings, etc. Saw an interview at one yesterday. I think coffee shops support the community and if coffee is the expense of the community center, I'm willing to pay.

Answer 7

Isn't it crazier to pay eight dollars for a movie?

At least a cup of coffee can help you be more productive!
Sure, a cheaper cup is even more productive, but it doesn't taste as good, so you might not drink as much and your productivity would fall.

; )

Answer 8

Although I don't frequent Starbucks, it's kind of a last resort for my coffee fix, I understand the addiction and the price. (Starbucks is actually on the cheap end of coffee, espeically when it comes to taste.)
I myself own a restaurant and the bottom line is CONVENIENCE! Places like Starbucks are quick, fast, and meet a need.
Another bottom line is EVERYTHING IS EXPENSIVE, so $5 for a latte or cappuccino is just another frivolous thing we buy that's too expensive.

Answer 9

I agree !

I don't see any end to it any time soon either ! People keep on spending and keep on complaining. They fail to look in the mirror and see that is where their problems derive from.

aaaaaaaaaaaaah life is good when I spend money on things that make me more money rather than a $5.oo coffee !!

Answer 10

All i pass to assert is i in my opinion do no longer boo for the drivers i do in comparison to...even with the indisputable fact that it particularly is different people's suited to realize this. do exactly no longer throw something at my driving force whilst he wins. I mean, like all of the drivers say...as long as they're booing a minimum of they're paying interest to us. Tony Stewart and Jeff Gordon have continuously reported that as quickly as they are actually not getting anymore cheers or boos they understand they have lost the interest of the NASCAR followers and that consistent with threat they could think of approximately retiring. (of direction no longer in those suited words, yet on the brink of that result.) think of on the subject of the driving force that have been given the loudest boos in the previous he grew to become into killed, it particularly is suited Dale Earnhardt. AND, who's merchandise nonetheless sells extra suitable than a number of the actual drivers in Cup racing on the instant....as quickly as extra, Dale Earnhardt. He grew to become into the main hated driving force on the music....yet he grew to become into continuously and could continuously be the main respected driving force in NASCAR. So, the boos do no longer project me...heck each so often this is the only way i understand who's been anounced for the duration of driving force intros. If i'm busy or talking to a chum, loud boos enable me understand that it particularly is the two Tony or Jeff. and of direction loud cheers enable me understand that Jr.'s come out on the degree.