Even without debt, sustained deflation is a sign the economy went to shit. Prices go down when there’s no one buying, if there’s no one buying companies close, people lose jobs, which causes other companies to go bankrupt and so on. Debt is the icing on the cake. People that think that long term deflation and deflationary policies are good never went through one.
Even without debt, sustained deflation is a sign the economy went to shit. Prices go down when there’s no one buying, if there’s no one buying companies close, people lose jobs, which causes other companies to go bankrupt and so on. Debt is the icing on the cake. People that think that long term deflation and deflationary policies are good never went through one.
The Apple II sold for $1298 in 1977. You can buy a mac mini for $599 today. Deflation is real in some markets and we are just fine.
Keyword in some markets. And in that case driven by efficiency increases in comparison with the rest of the economy.