Post
Topic
Board Economics
Re: Is deflation truly that bad for an economy?
by
NotLambchop
on 04/03/2015, 22:01:40 UTC
...
I would really like people to finally put the non-argument...

Whelp, calling an argument you can't counter "non-argument" seems like a good start.


Would you seriously argue that someone will not purchase a car because he expects it to be 2% cheaper next year?
And what about the next year: again no purchase due to the same reason?

Asking the question is answering it. It's really a non-argument.

Would I put off buying a fleet of new cars for my company if cars depreciated more substantially?  The answer is "obviously yes."
No one is talking about necessities, like morning coffee.  I don't care if I have to pay double @ 7am for the same cup I could buy for its regular price @ 7pm.  Don't extrapolate from this that I don't care about saving money, and that 200% daily deflation would not alter my buying habits.

My turn:
Would you invest in car company stock that nets 2% a year, knowing that keeping your money in your mattress Trezor would be both safer & net the same end result?