Oct. 21, 2009

Economic Legos / The Lego Opportunity Cost

Okay, before I begin, I would like you to think of all the things you could do with $500 dollars. This is called your Opportunity Cost—thinking of all the things you could've done with your money and/or Goods and Services. ANYWAYS, a day or two ago, both Grandma and Daddy brought-home [well. technically, it wasn't Grandma's home, but she brought-it to our house—oh, and she also brought some yummy groceries (Thank you. :) )] Lego Magazines (one for each) that Levi has been long-awaiting. And when I decided to look at this magazine, I couldn't believe the prices—it was heard to find something under a hundred dollars (okay, under $99.99, but whoever can round knows that it is just $100.00)! Anyways, I am about to come to that point. My theory for such sky-rocketing prices is that this is basically because the dollar is falling and, since basically all Legos are manufactured in Denmark (which uses the Euro, which is partially on the Gold Standard, I believe), this is an important fact. Also, since they are from Denmark, they also must be delivered by plane to a "Headquarters"-ish place in The United States—and what do planes run on? Fuel—AKA, Fossil Fuels, if you follow me—the prices of Gas in the United States are also sky-rocketing. ANYWAYS, most of the prices have at least doubled, though many have tripled. Now we are about to zone-off the point real fast (this is a warning :) ). A couple of years ago, my Uncle Andrew bought me a cool Lego Millennium Falcon set, while Stephie helped Mommy put-it together. The point that I mention this is that, not long after he bought me this, it was discontinued and another set was put in it's place—only this one was for "Collecting" and not for playing-inside (BORRRING! :) ). Anyways, turns-out, that set it still around... Okay, before I show you this, keep in mind that it was originally around $100 Dollars (which is still very high for a Lego) but just wait until you see this: That's right, your eyes don't deceive you—$500 dollars! I've been wondering, who on earth would spend that much money on a Lego?!?!?!? (meaning no offense to those who would). To put it in perspective, pretend that you have an ounce of gold. Think of all you could do with it (as in spending it—not as in playing with it or anything else like that) besides, say, buying about two of Millennium Falcon Lego-sets. Okay, we're coming-back to my theory point (again, a warning for you who are afraid of boredom). I have realized recently that, since They tend to have that lead-scanner-thingy that scans toys now, all of the toys are going to cost a lot more money, if you follow me. Okay, back to the Magazine Point (This "Unorganized" Ranting is starting to get a bit messy—I think I better end this soon :) ). Another thing the Lego Group is doing (meaning no offense to them) is that they are either raising the prices or shrinking-down the models for a "Unique Play Experience" and keeping the same prices. Okay, I'm done. :) -Isaac Aaron Buckley

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