Quote from: johnyj on March 09, 2015, 12:44:29 AM

Quote from: tee-rex on March 07, 2015, 10:44:12 AM

Quote from: picolo on March 07, 2015, 09:22:27 AM

Deflation is often a consequence of a lack of demand which means the economy is in a bad shape but deflation is not a bad thing in itself in the sense that it is a positive consequence of a lack of demand and helps people.
People don't buy less if they think the price is going to go down a little bit or even a lot, look at people buying with credit cards or buying iphones which will be half price in a year.

You seem to be still confused about the wrong side of deflation (is there a right side?). There are two things to understand why the collapse in aggregate demand is bad (and very bad at that). First, it is enterprise that creates value, so it comes before anything else. Secondly, when prices are falling, it becomes more risky to run it, since you may end up with less money than if you weren't engaged in enterprise altogether. Thus less value is being created overall, and how this can help people?

By the way, the prices of i-phones going down in half a year have nothing to do with deflation.

Enterprise does not create value, value comes from the demand, and enterprise just create supply, they can't artificially create demand

Some other guys here even come to the point of saying that value is being created by speculation. You evidently seem to be of the same kind. I'm not going to get into nit-picking (value added vs value created) since your understanding (or, rather, lack thereof) of what's what is pretty obvious (at least, to me). But just in case, if enterprise doesn't create value, why do we need it at all?

And you still didn't explain how a company's real income is increased when the company suffers losses due to decreases in prices.