Post by Baron von Lotsov on Oct 18, 2022 13:19:30 GMT
Here is an example which I hope makes a wider point. The price of Glastonbury Festival tickets has risen 25% in one year. The festival itself does not always even turn a profit, or if it does, the profit is a very small percentage of the revenue. So for this reason we can guess that the 25% rise was because costs have risen by 25% or perhaps even more in one year. This is despite reported inflation to be around 10%.
What it seems to me is that with inflation, it is the case that different things on the market increase at different rates and some even go down in cost. We buy a lot of Chinese manufactured goods and China's inflation rate is 2.2% but many of these goods are technical/electrical gadgets which are actually deflationary, so the Chinese imports pull the overall inflation rate down.
This leads me to surmise without further knowledge that it could be the cost of employing labour. A festival is a thing where you buy in many services, and these services are mostly labour. Sure there is the hiring of a fair amount of equipment but the people bill dwarfs the lot. Another possibility is the people bill goes up but the wages do not, because i do not think wages in casual labour have risen > 25% in a year. Do they need more qualifications for Health and Safety/rules saying more security per 100 people etc. Whichever way, it still comes down to expensive labour.
