Yeah, deflation is awful. Imagine our continuously increased production and efficiency resulting in goods becoming cheaper and the value of the working person’s dollar going farther.
Horrifying.
Horrifying.
https://en.m.wikipedia.org/wiki/Paradox_of_thrift
You get ahead by saving, but everyone can’t do that all together or the economy collapses.
Some inflation is needed; what we don't need is https://brrr.money/
You mean with deflation people will suddenly no longer want for more money? Sign us up!
No, they mean that people will want jobs and not find them. [addition: this is at least the orthodox view behind small inflation targets as policy, that on the whole it's the best trade off]
Either way, I'm not saying I believe the analysis, but when economists talk about the problems of deflation they aren't afraid that people will have "enough" money.
Even if you have negative interest rates on money, people will flock to the next basic human need that has its own liquidity preference. Once the yield on land or property falls below liquidity preference people will hold onto empty property. The solution to the problem is to neutralize ground rent via land value taxation.
Thus you have both a money cycle and a real estate cycle.
That's not so great for the people who need to borrow it, or want a job
If the books say it's wrong, maybe it's time they get updated.
[1] https://www5.cao.go.jp/zenbun/wp-e/wp-je03/03-00102.html
What's the harm?
Non-monetary compensation, like health insurance, still costs the business a lot of money.
Would you be in favor of getting rid of mandatory health insurance and passing that money to employees instead?
If the news weren’t telling us the economy tanked, nobody would be worried. Houses are affordable, jobs are everywhere, people aren’t going into lifelong debt because of medical issues.
In countries with inflation, the wealth divide is massive and growing. Wages might be up sometimes. But house prices and health insurance far outstrip any gains there. I guess milk is a little cheaper though. Maybe that tips the scales.
Can be vulgar to point this out, but the homelessness in America is a policy choice. If America had the same economy as Japan, we would still have lots of homelessness, because that is how we choose to organize our society.
This sounds facile, but then again consider how we choose to organize our healthcare system.
[1] https://www.macrotrends.net/countries/JPN/japan/unemployment...
The us had deflation between 1860 and 1910. I guess at the end of fifty years of that we had, like, no laborers, or something.
Please read a history book before provably wrong macro dogma rots your brain and all you do is spout nonsense that could actually harm people.
[1] https://en.m.wikipedia.org/wiki/Long_Depression#:~:text=In%2....
You'd be foolish to sell products for lower prices, you don't get a discount on debt for example (negative interest rates).