Right. Your example illustrates the stupidity of deflation. You got so tripped up in the terms and concepts, you didn't even get it right.
In a deflationary economy, people always buy LESS of your stuff and you have no idea if that's happening because your goods are less popular or because the currency is deflating or possibly both. In an inflationary system, if less people are buying my stuff, I know there's a problem with my goods.
"In a deflationary economy, people always buy LESS of your stuff and you have no idea if that's happening"
[citation needed]
Where did I trip up?
The fact that you need a citation to realize that in a deflationary system if prices stay stagnant people will consume less by definition. You don't seem to realize that. Deflation means prices are falling. If prices don't fall and the dollar is worth more, people buy less of your stuff. This isn't rocket science. Please stop advocating things you don't even understand.
Comments
Right. Your example illustrates the stupidity of deflation. You got so tripped up in the terms and concepts, you didn't even get it right.
In a deflationary economy, people always buy LESS of your stuff and you have no idea if that's happening because your goods are less popular or because the currency is deflating or possibly both. In an inflationary system, if less people are buying my stuff, I know there's a problem with my goods.
"You got so tripped up in the terms and concepts, you didn't even get it right."
Where did I trip up?
Sure, people will need to adjust their thinking, but I think you overestimate the obsession with rising salaries/costs.
"In a deflationary economy, people always buy LESS of your stuff and you have no idea if that's happening"
[citation needed]
The fact that you need a citation to realize that in a deflationary system if prices stay stagnant people will consume less by definition. You don't seem to realize that. Deflation means prices are falling. If prices don't fall and the dollar is worth more, people buy less of your stuff. This isn't rocket science. Please stop advocating things you don't even understand.
You didn't answer my question, you're just attacking me.