Who wouldn't like prices to start falling? Careful what you wish for, economists say - Breitbart
Many Americans are in a sour mood about the economy for one main reason: Prices feel too high Who wouldn't like prices to start falling? Careful what you
Inflation isn't "prices going up", it's the value of our currency going down. It's a problem of having a fiat currency (paper not based on gold). Fiat allows government to make bad investments on things like social programs (to influence votes) and warfare.
Deflation is selling goods under their value, it's a last ditch effort to get something, but cuts into the ability for business to continue to function and resupply. They can't maintain and layoffs spiral.
Deflation is falling cost of production, and /or rising value of a currency based on a non inflatable standard (silver ,gold , copper , conch shells)
Thanks for that. My bad.
If inflation is the value of our currency going down. Then deflation is the value of our currency going up, not "prices doing down". The problem comes from salaries increasing to keep up with the cost of living. But you can't just start cutting salaries when things go back to normal. That's why layoffs happen. Because salaries are now too high.
In a perfect world, yes. But the value of our currency doesn't go up. We are over our heads in debt. We are slaves to the bankers.
Deflation in a bad economy is rushing to sell product before it decreases any more (fire sale). A company can't survive not making a profit, unless it's propped up by something else, companies like Amazon, Walmart, Apple seem to have unseen benefactors keeping them going. It's a racket. The lockdowns made it more obvious, you couldn't go to a mom & pop store, but you could go to Walmart!