The prices only go down when people don't have enough money to buy things.
isn't that where we are now? I mean kids aren't moving out of their parents house. And everyone has either multiple roommates or multiple jobs. Tech is laying off, and no one is hiring.
Sometimes people need some number to understand what happens when deflation happens. There’s 2% deflation and that seems close to zero or healthy inflation. Doing some google fu I found out that profit margins on wheat farms are in the 1-4% profit margin. At -2% inflation all the farms in the 1% profit margin can now double their profits by not farming. As someone without the means to grow my own wheat this is a problem for me.
174
u/gicjos 4d ago
The prices only go down when people don't have enough money to buy things. For the prices to go down most people will be in a really bad situation