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Would I put off buying a fleet of new cars for my company if cars depreciated more substantially? The answer is "obviously yes."
Would I put off buying a fleet of new cars for my company if cars depreciated more substantially? The answer is "obviously yes."
So you would never ever buy new cars for your company (and why did you purchase cars at all: remember, the fallacy argument is that such purchase is (forever) postponed).
[img width]http://doctorfeelgood.co.nz/wp-content/uploads/2014/06/spock-illogical.jpg[/img]
Of course I would buy new cars. I just wouldn't buy as many cars in my lifetime as I would if the money I held was going to be worth less next year.
I think we are getting somewhere. Definitely progressing to something here. Mild deflation would influence your calculation, but you will not stop buying goods and services. The economy will not screech to a halt with people postponing purchases for the rest of their lives. The balance just shifts.
Next item to explore: if the economy does not halt with screeching tyres, what does exactly happen then?
I think Maegfaer already raised a few interesting items so no need to start all over again
