Quote from: Allurestorm on March 08, 2015, 11:10:20 AM

Quote from: picolo on March 05, 2015, 08:41:38 PM

Quote from: Allurestorm on March 04, 2015, 01:07:24 AM

We are being told deflation is bad for our economies and this is used as excuse from our central banks to print more money and destroy our savings/currencies. What they say is that in a deflationary environment, the price of goods falls so people would not buy anything and would rather wait to buy in future, therefore slowing the economy. If so why smartphones sell like hot cakes?their price is falling and people are buying them actually because of that. Maybe because each time the price decreases customers feel like they are getting a good deal, therefore are prompted to buy!!
If our economies are not growing it means that there isn't much inflation pressure, so I don't see any reason to artificially induce inflation by destroying our currencies. I would like to know your view on that..also do you think bitcoins (deflationary) will see a wider adoption by retailers in future?

Peope don't delay their spending because they think the price is going to go down a litlle bit or they would not buy iphones that will go down 50% in price in a year or they wouldn't buy as much with their credit cards. Deflation is good for the consumer but deflation happens during a drepression and when there is a lack of demand so it is sometimes associated with it but it is a consequence of the lack of demand not a cause.

thank you for your comment, I think deflation is definitely a symptom of a weak economy but it can also be the results of technological progress and an increase in efficiency in manufacturing. If a company finds a way to bring down costs to manufacture a product it's very likely to lower prices to be more competitive. I think deflation is also the results of globalization, there is much more competition now, and there is a real "price war" between countries

I have to disagree to a degree. In reality it doesn't work as we all would have wanted it to work out. If a company finds a way to bring down costs to manufacture a product, they won't lower the price but most likely market a new model at the same price and stop producing the previous model altogether. If you look at the price of consumer electronics (say, personal computers) for the last twenty or so years, you will see that the prices didn't change much within this time span.