Post
Topic
Board Economics
Re: Deflation
by
Gun Boat
on 21/08/2023, 10:45:41 UTC
Consumer electronics prices fall all the time, and this is good.  Why is it somehow bad that homes become cheaper?  Bad for the speculators on the long end, sure, but everyone else?  I think not.

Home prices have fallen to reflect economic reality.  They're not arbitrary numbers, and shouldn't be manipulated as though they were.

Good for the people that sat on their cash instead of using it to further fuel the housing bubble.

Good for all speculators who make the right call.  %^&* speculators who think that anybody but themselves should pay for their bets that go wrong.  %^*& politicians and central bankers whose interventions fuel speculative bubbles.  Too bad for regular consumers that buy into inflated markets.  That's about all you can say, and anything else is just bad economics, IMHO.

Oh, and no, a bitcoin windfall is not why I'm here.  I think most people who promote sound money do it because they really do care.

Deflation can have both positive and negative impacts on the economy.it can lead to the falling or lower prices of goods and services for consumers.
It can also discourage investments and unnecessary spendings,it is very important for policymakers to carefully manage deflation to maintain a balanced economy.