Why is it that money became the de facto indicator of whether something is good or not?

Question

Seems like the mindset of people is that if it costs more, it must be better (i.e. brand name clothes). Why is this?

Answer 1

You really have to do your homework to see if paying more is worth it in the long run. For example, I have tried out flat-screen tv's, and a brand like Samsung or Sony is a better quality tv than the no-names that are much cheaper. Same with New Balance (at least their top-of-the-line models) over no-name shoes: they are more expensive, but last longer and are more comfortable. I get the rest of my clothes at the thrift stores, so can't answer for the rest of my wardrobe. But as far as something like a car, I can't see paying the extra money for a Lexus when a Toyota works perfectly fine (Lexus is made by Toyota, fyi).

Answer 2

Putting aside supply and demand, in somethings cost is proportional to quality in others it is not. In the sort of things that you mention, people pay extra for the sake of having other people know that they have money to waste. Various goods ( "velban goods" "positional goods") may actually sell fewer units if they become cheaper since they are no longer "status" items. Their desierability is a direct result of their cost and the prestige that is assumed to go along with having them.
Just an example of the fact that the market does not work solely on the basis of rational desicions.

Answer 3

It might seem that money became the de facto indicator of whats good or not simply because of what is advertised through media, what is acceptable in the majority of society and indoctrination in education.

Answer 4

well i would say that's only in developed countries such as America and Europe where big business has taken over . I look at as a form of brain washing - people in these countries are ridiculed and looked down upon if they don't have something and then they feel like they are nothing unless they run out and buy it and most of the time the item is something so useless - like a handbag !

Answer 5

Usually a price is related to it's quality, although that is not true at all. We must consider quality, materials, service of the product and brand reputation.

Answer 6

its only a trend,it will never cease,but you are right why waste the money,when you can buy things without the price tag that are the same.in some cases made by the same company under a different label

Answer 7

You do normally get what you pay for.