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by maratd
4571 days ago
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Right. Your example illustrates the stupidity of deflation. You got so tripped up in the terms and concepts, you didn't even get it right. 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. |
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Where did I trip up?
Sure, people will need to adjust their thinking, but I think you overestimate the obsession with rising salaries/costs.
"In a deflationary economy, people always buy LESS of your stuff and you have no idea if that's happening"
[citation needed]