Post
Topic
Board Economics
Re: Is deflation truly that bad for an economy?
by
dinofelis
on 13/04/2015, 18:00:59 UTC
the benefit is that you have increased output.

I can now use the same strategy towards a worker.  I can say that in order for my products to become cheaper so that he can buy more of them, I propose that he works 20% more time for a slightly lower wage.  As such, my labor cost will be lower, and I can lower the price of my products more, so that he can  The logic is the same.  If the guy tells me: "hey, you propose me to work more and earn less ?" I will answer him: "but my dear, your benefit is that you have increased your output" Smiley