The popular idea that prices should fall to previous lows gives most economists chills. Deflation is bad for everyone, they say.
The popular idea that prices should fall to previous lows gives most economists chills. Deflation is bad for everyone, they say.
There’s a difference between looking at the price of things and buying what you want/need if you’re comfortable with the price VS the situation during a deflatory period where you look at the price, you’re comfortable with it, but you know it’s not an absolutely necessary purchase so you figure you’ll just wait because the price will be coming down some more.
One of the two leads to people losing their job as demand crashes as people expect prices to go down.
If people only buy what they need and not what they want then I hope you have a plan for all the people who suddenly won’t have a job. We don’t need many things in life and we produce more than enough of it for everyone already… So, what do you do with the pool salesman or the network tech that works for Valve now that their job is unnecessary because people don’t buy stuff they want anymore?
Heck, you wouldn’t be here giving lessons on capitalism and wants vs needs if you followed what you’re preaching because you wouldn’t have whatever device you’re using to type on.
Again, this problem only exists because capitalism requires rampant spending with no breaks. It’s a failed system that should be corrected.
History has seen shifts in consumer buying patterens, and entire industries go under. You know what else happens? Other industries come up, and jobs change.
If industry isn’t adaptable, then the result will be failure. Can’t blame someone else for not keeping their unsustainable business model afloat.
No. There is nothing about private ownership of capital that requires rampant spending. Hell, us in Canada are especially good at allowing capital to sit idle.
It is our debt-based economy that requires rampant spending.