bobbydd (OP) later said:
First, a larger number of people can afford to spend more. This comes from rising middle classes in traditionally emerging economies (so there are just many more people who can spend money on luxuries). It also comes from increased concentration of wealth -- rather than having 100 people who can buy 100 nice-but-basic systems, there's one person who can spend lots on a single expensive system.
Second, the production of stereo gear is generally slow (low supply) so it's in the company's best interest to set high prices.
I'd also guess that better information (the internet) leads more people to chase fewer brands that are considered to be the best, further concentrating demand for (and therefore pricing power in) a few ultra-premium brands.
This has been going on for a while in French wines, and I suspect many other luxury products. I'd say these economic forces contribute much more to rising audio gear prices than any of the component or design changes.
I inquired as to why the new amplifier we were listening to was so expensive?Ok, so that's a different question than the original (after all, computer technology has improved massively but home computers aren't more expensive). I'd put the price change down to economics:
First, a larger number of people can afford to spend more. This comes from rising middle classes in traditionally emerging economies (so there are just many more people who can spend money on luxuries). It also comes from increased concentration of wealth -- rather than having 100 people who can buy 100 nice-but-basic systems, there's one person who can spend lots on a single expensive system.
Second, the production of stereo gear is generally slow (low supply) so it's in the company's best interest to set high prices.
I'd also guess that better information (the internet) leads more people to chase fewer brands that are considered to be the best, further concentrating demand for (and therefore pricing power in) a few ultra-premium brands.
This has been going on for a while in French wines, and I suspect many other luxury products. I'd say these economic forces contribute much more to rising audio gear prices than any of the component or design changes.