My last two brain cells dying after seeing half of the comments saying that deflation is actually good.
To be fair… us common folk keep hearing stuff about the economy… but the only outcome at the end of the day is we get screwed in higher prices, lower wages, fucked up climate for our kids. People get tired pretending this Economy isn’t rigged by wall street and the U.S Govt or people close to it.
I don’t think you need an economist to understand why it can quickly lead to a runaway disaster… Imagine you see a car price going down every week by 1k, do you buy it this week or next week? The competitor what do you think they need to do to compete? Lower their price too but wait everybody is waiting for next week, so literally nobody is buying anymore … So as a company you just start to fire people or close shop as quickly as possible, so a lot of people are now on the market so their labor value also goes down, ie. the salaries are dropping… This tsunami of jobless people would they buy a car this week you think? So companies need to continue dropping the prices…
Imagine seeing a car price go up every week. Interest rates go up a full point every 6 months. Next month you might be able to afford it but next month it’s gone up 4k and another point.
Companies are making money and people keep buying cars so they keep increasing prices.
I get your point but when you as a person are removed entirely from the equation then you no longer have a stake. How many Americans have no savings, no investments and work a miserable job that doesn’t pay the bills? Do you think they give a fuck if it all comes crashing down? They probably do but a lot less than everyone else.
With all of this deflation, how is China supposed to send more balloons?
These would be problems if China had a liberal economic model. Fortunately they have whole process workers democracy, and these things aren’t really problems at all.
I have been feeling an awful lot like an aloe vera lately.
In any case, if you’re interested in learning more, here’s a great place to start.
