The pink tax is a phenomenon where products marketed toward girls and women are more expensive than the same products targeted for men and boys. This applies to all sorts of products: dry cleaning, hygiene products, clothing, and even canes. It has been found that on average, women pay more than men 42 percent of the time, which adds up to thousands of dollars per year. Additionally, women already make only about three-quarters of what men make, so they have less income to begin with. This is a regressive measure because it more heavily burdens the group that has less income.
The pink tax is seen as a form of price discrimination. Price discrimination is charging consumers as much as they are willing to pay for an item. The pink tax is clearly an example of price discrimination because it gives women who are willing the opportunity to pay more for their goods. In a grocery store, when the same product is packaged in pink and black, those who are willing to pay more for pink have the opportunity to do so. Though this may seem ridiculous that pink costs more, it makes economic sense for companies if consumers are willing to pay it, which many are. Oftentimes, women don't know that they are actually being charged more, but nevertheless, their participation in price discrimination allows it to continue.
Works Cited:
https://www.listenmoneymatters.com/the-pink-tax/
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I really like this post as it opened up my eyes to the concept of "pink tax", a term I actually never heard of before. Although it is unfortunate that such a tax exists, taking advantage of women. I didn't think that people would be willing to pay more money for pink and black packaging, however if true, this would definitely make economic sense for companies. After reading this post, I would definitely try to be more aware of the pink tax and where it exists.
ReplyDeleteThe "pink tax" is a really frustrating topic. It displays how companies take advantage of the consumer's demand in order to maximize their profits. While contributing to this action, they end up promoting a regressive tax that augments economic disparities between men and women.
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