Clothing Retailers Caught Throwing Out Unsold Clothes


Bill Ross's picture

Why? Its simple really: law of supply and demand. Demand falls (economy sucks), supply goes up, given competition, price must fall. Solution: destroy excess supply, try to match supply to demand, to maintain price. Same way war economically works (for some, basic secondary school math required):

golefevre's picture

I just love paying taxes. I love a government that threatens me with violence if I don't "volunteer" a portion of my income. I love a system of sales, marketing and "brand dilution" that encourages disposal of perfectly good commodities rather than dropping prices. How much of this disposal practice falls under the "disposal of obsolete inventory" in the Universal Accounting Procedures where the full-book value is deducted from sales? Would any serious company engaged in the very serious business of making a profit care about some "brand dilution" nonsense (come on, IT'S WAL-Mart and H&M here, folks) if it were not an advantage on the bottom line, and hence, the total tax liability? Of COURSE they wouldn't. They'd maximize every sale, every possible margin. So the next time you see someone that needs warm clothes, blame the IRS. Thank you, Stefan Molyneux and Frederic Bastiat for making this one exceptionally easy to diagnose.

tzo's picture

Donation wouldn't count as disposal?