It seems we have a pretty good example of what I wrote the other day - Yah-boo sucks politics.
I just had to scrape Mrs Smith off the ceiling yet again, after she was reading about a bunch of opposition supporters saying the Government was useless.
Why? Because as far as we can tell the Government offered around US$40 for vaccines last year, and the deal two businesses have just done cost US$32.
Deep breath. Now Class, listen carefully. When a product is new, it holds a value that is higher than when it becomes older. Also, the more of a certain product you buy, the cheaper it is.
Here is an example which everyone should know about. Price tracking has shown that with iPhones – as with other major phones and other products – it makes sense to wait a few weeks before buying a newly released model. According to the European price watching service Idealo, the price of new iPhone models drops by an average of 8% in the first two months after their release. After four months, the average drop was 14%.
The iPhone released a year ago costs 24% less on average, according to Idealo figures.
So, in terms of the vaccine, $40 minus $32 is $8. That makes the latest vaccine purchase 20% cheaper which does not compare favourably with our iPhone example.
It is reasonable to take iPhones as a benchmark of the way new products usually come down in value in the normal scheme of economic behaviour, which takes into account things like competition. Like more companies are now making vaccines than a year ago. QED
And this before taking into account there was a huge difference in the amount ordered so the price should have been lower than US$32 and that seems to indicate that the Government last year would have actually struck a better deal than this latest one in real terms.
Shrill Yah-boo sucks voices again, beware of them and look at the evidence.
Tinkerty Tonk
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