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  #12  
Old August 12, 2003, 05:31 PM
Michael Ross (Aust, Qld)
 
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Default The bigger picture

> Wal*Mart in the US has reduced prices for
> quite a while to the benefit of consumers
> and the detriment of its competitors.

That may be the case in certain lines and whatnot. However, before giving them the praise for giving us all a better deal, a look at their real motives should be in order.

IF price cutting hurts a competitor, they will do it.

IF price cutting increases sales and makes them more money in the end, they will do it.

Doing the right thing by the consumer is the last thing the retail giants care about.

> I think it's been able to do that from its
> lower cost base relative to other
> competitors, primarily due to scale
> (physical size of stores) and purchasing /
> negotiation power. Some of these savings
> have been passed on.

ONLY because it serves some other purpose first. Our benefit comes second.

> Using bar codes to scan in items instead of
> manually writing them down improves
> efficiency, reduces costs, and has the end
> effect of reducing prices.

It first increases profits - fewer people needed in the operation because much is handled electronically. Due to the increased efficiency more items can be sold... supply and demand... some prices come down.

> While I don't disagree with this, I was just
> pointing out that reducing your privacy is
> usually not the end goal of a company by
> itself, and that usually new devices are
> designed to lower costs which eventually get
> passed on to consumers.

New devices are first and foremost designed to make the company more money - by way of reduced expenses. Any price saving is a by-product and is not a given result.

> I would imagine smart tags would improve
> supply chain efficiencies and reduce
> bottlenecks, lowering overall consumer cost.
> You could also use them to create automatic
> check-outs at supermarkets where you can
> wander out without delay and without
> implicitly paying the salary of the person
> serving you. All I'm saying is that I don't
> think it's all bad.

A simple electronic tag - as used in clothes stores and other retail outlets like Harvey Norman - MIGHT be okay. But these tags are ID TAGS.

THAT is the difference.

Imagine... someone with a reader scans the boot of your car. They can then tell WHAT you bought and WHERE it was bought - probably even how much you bought it for. And they can do this WITHOUT YOUR KNOWLEDGE OR PERMISSION!

You would not let someone rummage through your stuff to see what you have. Yet you seem to be fine with them doing this electronically.

The thing is... no matter how good the intention... it WILL be ABUSED. EVERY good intention thing - whether govt created or not - has had the opposite effect it was intended for and has been abused.

We now have generations of welfare bludgers and single mothers who view welfare as a right... not something to tide you over in an emergency -= as intended. "Sit down money" the Aboriginies call it.

> Now, is this worth privacy concerns? Perhaps
> not, but it's not a one-sided issue. Plus, I
> don't see why you couldn't have smart tags
> and just retain your anonymity by paying
> with cash, but perhaps I don't see the full
> picture.

Because after paying cash someone - anyone - with a reader can still track your purchases.

Think of the greater implications...

I have previously mentioned how the police can look you up and see whether you have guns in your house before they visit you - and how I was tracked as a gun owner from state to state via my driver's license.

It won't be too hard to imagine a time when they can come in to your house - whoever "they" are... and scan your stuff to see WHERE you bought it, WHEN you bought.

Think the security issue nmight be pushed at some point... hey... register your stuff with this here database and break and enters will be a thing of the past, because as soon they try to pawn it, the pawn shop scan will show they are not the rightful owners of the items.

This is just the beginning. It's the "creep" that gets you. The only way to stop it is to stop it at the start.

Michael Ross
 


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