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by tlrobinson
4571 days ago
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So in a deflationary currency you'll have: "More people are buying my shit. I'm running out of stock. Maybe I won't decrease my prices this year. My prices didn't decrease, now people are buying the same amount of shit they did before. I am making more money. I feel good. Oh crap, my supplier didn't decrease his prices this year. My supplier is an asshole. But people are buying my stuff, I didn't have to lower prices, things are good!" |
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In a deflationary economy, people always buy LESS of your stuff and you have no idea if that's happening because your goods are less popular or because the currency is deflating or possibly both. In an inflationary system, if less people are buying my stuff, I know there's a problem with my goods.