Post
Topic
Board Economics
Re: Is deflation truly that bad for an economy?
by
johnyj
on 09/03/2015, 10:03:39 UTC

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.

Gambling have been existing since human exists, it is a real demand, especially for rich people. It provides fun and excitement and a hope for a potential gain, just like any other game

As a business owner, I can tell you that my income purely depends on market demand, and that demand changes vastly during each year (up to 100%), due to competition and seasonal factors. Even a very mature business can not reach a stable state of constant income

So what FED is doing has nothing to do with my business, in fact when they print more money to shift wealth to banks, the majority of my customers will become poorer, and consume less, resulting less sales at my side

True, if banks later spend their income, we will get some boost in consumption and income, but look at what banks are buying: loads of debts and assets, they only consume a little and re-invest a lot