Ever walked into a local coffee shop, looked at a $7 latte, and thought, "How are you rich and you're robbing people?" It’s a gut reaction. We see a business owner driving a nice car or expanding to a second location while our own grocery bills skyrocket, and the math just doesn't feel like it adds up. But there is a massive gap between perceived wealth and the actual mechanics of "robbing" the public. Honestly, the reality of modern business is a lot messier than a simple villain arc.
Wealth is visible. Expenses are invisible.
When people ask "how are you rich and you're robbing people," they are usually reacting to price gouging or shrinkflation. It’s that bitter taste in your mouth when a bag of chips is 40% air, but the CEO of the snack company just cleared a $20 million bonus. You're not crazy for feeling that way. The Federal Trade Commission (FTC) has actually been looking into how large grocery chains maintained high prices even after supply chain pressures eased in 2023 and 2024.
The psychology behind the "Robbing" accusation
We tend to view price through the lens of fairness rather than market value. Behavioral economist Dan Ariely has talked extensively about this. If we think someone is profiting "too much" from our basic needs, we categorize it as theft. It’s an emotional response. You’ve probably felt it at the gas pump or when paying for a prescription.
But here is where it gets weird. In the world of small business, that "rich" owner might be one bad month away from total collapse. They’re driving a 2022 Lexus because it’s a tax-deductible business lease, not because they have $100k sitting in a savings account. To the customer, the price hike looks like greed. To the owner, it’s the only way to cover a 15% increase in commercial rent and the rising cost of eggs.
What actually counts as robbing the customer?
Let's look at real-world examples of where the "robbing" sentiment actually holds water. Predatory lending is a big one. Companies like payday lenders often charge interest rates exceeding 300% APR. That isn't just "business"—it’s a mathematical trap designed to keep people in debt.
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Then there’s the "Pink Tax." This refers to the historical trend where products marketed to women cost more than identical products marketed to men. A study from the New York City Department of Consumer Affairs found that, on average, women’s products cost 7% more. When you’re paying more for the exact same razor or shampoo just because of the packaging, it feels like a heist. Because it basically is.
The "How Are You Rich" Paradox in the Creator Economy
Social media has completely warped our sense of who is wealthy. You see an influencer posting from a villa in Bali. You think, "They’re rich, and they’re robbing people by selling this useless $500 masterclass."
Sometimes, you’re right. The "fake it 'til you make it" culture has birthed a generation of "gurus" who sell courses on how to get rich, and the only way they got rich was by selling the course itself. It’s a circular logic that mimics a Ponzi scheme. They show off rented Lamborghinis to convince you that their "system" works.
However, we also have to talk about the Value-Based Pricing model. If a consultant saves a company $1 million and charges $100,000 for it, are they robbing the company? They only worked for ten hours. Their hourly rate is technically $10,000. Most people would call that a scam. But the company doesn't care about the hours; they care about the $900,000 net gain. This is where the "robbing" narrative falls apart. Value isn't always tied to labor.
The hidden costs of being "Rich"
- Self-employment tax: In the US, if you’re the boss, you pay both the employer and employee side of Social Security and Medicare. That’s about 15.3% right off the top.
- Customer Acquisition Cost (CAC): It might cost a business $50 in ads just to get you to buy a $60 product.
- Liability Insurance: One slip-and-fall lawsuit can end a business. Coverage isn't cheap.
- Inventory spoilage: If you're in food or fashion, you're constantly throwing money away on things that didn't sell or went bad.
When the "Robbing" is actually systemic
If we move away from individuals and look at corporations, the "robbing" feels more literal. Consider "dark patterns" in web design. These are user interfaces designed to trick you into doing things, like buying insurance you don't need or making it impossible to cancel a subscription.
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Amazon has faced scrutiny for its "Project Nessie" algorithm, which the FTC alleged was used to test how much it could raise prices without losing customers. When algorithms are used to find the absolute breaking point of a consumer’s wallet, the line between "market equilibrium" and "robbing people" becomes incredibly thin.
It’s about the power imbalance. If you have no choice but to buy a product—like insulin or internet access—and the provider jacks up the price simply because they can, that is extractive behavior. It’s not creating value; it’s capturing it.
Breaking down the profit margins
Most people think restaurants make a 30% or 40% profit. They don't. Most make between 3% and 5%. If you spend $100 at a local bistro, the owner might only keep $5 after paying the staff, the landlord, the food suppliers, and the electric company.
When that owner raises the price of a burger by $2, they aren't getting rich. They are trying to keep the lights on. But when a massive tech company with a 30% net profit margin lays off 10,000 workers while authorizing a $50 billion stock buyback, the "robbing" accusation starts to feel much more accurate. That is a transfer of wealth from the labor force and the consumer to the shareholders.
How to spot a genuinely extractive business
If you’re trying to figure out if a business is actually robbing people or just navigating a tough economy, look for these red flags:
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- Lack of Transparency: They won't tell you what the fees are for until you're at the final checkout screen.
- Forced Scarcity: "Only 2 items left!" when there are actually thousands in a warehouse.
- The "Veblen" Effect: They charge a high price purely to signal status, with no underlying quality difference.
- Monopoly Power: You have no other choice in your geographic area.
Honestly, the world is full of people who are "rich" on paper but miserable and cash-poor in reality. And yeah, it’s also full of people who are genuinely exploitative. Distinguishing between the two requires looking past the price tag and at the actual value being delivered.
If a product makes your life better, saves you time, or solves a painful problem, the price is usually justified. If the product relies on trickery, addiction, or a lack of competition, then the "robbing" sentiment is probably spot on.
Navigating the "How Are You Rich" world as a consumer
Stop looking at the sticker price in a vacuum. Start looking at the utility per dollar.
If you feel like a business is robbing you, vote with your feet. The most powerful tool against extractive wealth is the refusal to participate in the ecosystem. Switch to a credit union. Buy from the farmers' market. Cancel the subscription that makes it hard to leave.
Actionable steps for the savvy consumer:
- Audit your "Zombie" subscriptions: Use an app or just go through your bank statement to kill the automatic payments for things you don't use. This is the easiest way to stop being "robbed" by small increments.
- Research "Cost of Goods Sold" (COGS): Before you get mad at a price, look up what it actually costs to make. You might find that the "expensive" item is actually a better deal than the cheap one that breaks in a week.
- Support "Open Book" businesses: Some companies now publish their exact costs and profit margins. This transparency builds trust and proves they aren't just "robbing" you for a higher margin.
- Negotiate where possible: For services like internet, insurance, or medical bills, the initial price is often a "sucker price." A simple phone call can often drop the cost significantly.
The tension between "how are you rich" and the consumer will always exist. It’s the natural friction of the marketplace. But by understanding the difference between high-value wealth and extractive greed, you can spend your money in a way that actually builds the world you want to live in.