Spending culture sometimes also entails the bogus ways of buying and selling without the right valuation. The willingness of people to buy a product irrespective of the prices is why there's a baseless increase in prices by the retailers.
In Nigeria when people are willing to pay any amount for a product it's not because the product is quality or worth it but it's because they want to flex their financial muscles at the detriment of people who do not really have money.
Spending culture sometimes becomes a bane to the country and the denomination of the fiat currencies available to people for spending.
When there's constant push or increase in prices not because of scarcity or other market forces it brings unexplainable inflation. In reality, demand needs to equal supply to actually maintain steady prices. But then in Nigeria sometimes retailers increase prices in goods and services simply because we having more people who are willing to pay outrageous prices because of the of their illegal means of making money.
In this video I talk about why excessive increase in prices affects the economy in the long run and the denominations of the fiat currencies at large.
▶️ 3Speak
