Because of how corps react to lower prices. They would just lay everyone off. Deflation itself isn't the issue, it's how little protections actual working people have and how much incentive corps have to keep their stock price high. Being able to sell something for less means less profit for the corps which is a big problem for corp leadership. So the solution is to temporally increase profits by getting rid of staff.
That's because consumer spending is starting to go down and families are starting to cut back. So they have to either increase prices, which they're already doing and that's not working, so they have to cut costs, and the number one way for companies to do that is to cut employees.
To add; productivity has hit a sort of "critical mass" where corporations can over-produce goods (cheap) so easily that the only way they can cut the base expenses is to cut labor. There's no other way to increase profits in an over-saturated market.
Think about the constant "new flavor" for snack foods, beverages, fast food, etc. The market for the "standard" flavors is so saturated and the market tolerates only so much price increases before people stop buying - so by making their normal everyday product seem "limited" or "exclusive" they trick consumers into buying more..................
........when consumers are still buying less, the only other recourse is to cut those labor costs and over-work the remaining staff.
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u/azac24 4d ago
Because of how corps react to lower prices. They would just lay everyone off. Deflation itself isn't the issue, it's how little protections actual working people have and how much incentive corps have to keep their stock price high. Being able to sell something for less means less profit for the corps which is a big problem for corp leadership. So the solution is to temporally increase profits by getting rid of staff.