Books are not too expensive
Joel J. Miller provocatively argues that books are not, in fact, too expensive, debunking a widespread complaint with hard data. He asserts that when adjusted for inflation, books are cheaper today than decades ago, highlighting the surprisingly thin profit margins of the publishing industry. This contrarian take, backed by economic analysis, appeals to HN's appreciation for challenging conventional wisdom with evidence.
The Lowdown
Joel J. Miller tackles the widespread perception that books are prohibitively expensive, asserting that this belief is fundamentally misguided. He presents a detailed argument that, contrary to popular sentiment, books are actually a relative bargain, especially when viewed through an economic lens.
- Inflation Adjustment: The article demonstrates that historical book prices, such as a 1960 hardcover of To Kill a Mockingbird at $3.95, would translate to $43 in today's dollars. Current hardcovers, typically priced around $28-$35, are significantly lower than their inflation-adjusted historical counterparts.
- CPI Data: According to the Bureau of Labor Statistics, "recreational books" have seen an average inflation rate of -0.09% per year since 1997, meaning they are slightly cheaper now than they were then. This contrasts sharply with other sectors like housing, healthcare, and entertainment, which have seen prices rise well above general inflation.
- Thin Margins: The publishing industry operates on remarkably slim profit margins, with an average EBITDA of around 13%, closer to grocery stores than to high-profit sectors like tech or pharmaceuticals. Publishers are already running lean, making significant price cuts unsustainable.
- Cost Breakdown: A multitude of costs contribute to a book's cover price, including author advances, editorial work, printing, binding, warehousing, marketing, and the costly returns system, where bookstores can send unsold inventory back to publishers for full credit.
- Consequences of Cheaper Books: The author warns that pushing for lower book prices would lead to a decline in quality, fewer diverse titles, reduced pay for authors and industry professionals, and ultimately jeopardize the entire literary ecosystem.
Ultimately, Miller contends that the feeling of books being expensive stems from the rising costs of everything else, rather than an actual increase in the real price of books. He encourages readers to recognize the immense value—creative labor, immersive entertainment, and permanent ownership—that a book offers for its comparatively modest price.