Quote from: davis196 on May 05, 2024, 10:36:09 AM

Quote from: Alphakilo on May 01, 2024, 06:49:31 PM

Which of these economic situations would you prefer to find yourself in?

A- Your salary is stagnant but prices fall. Where this happens, your real purchasing power has increased. It's called constructive deflation. And even if your salary falls, but prices fall faster, you are still ahead.

B- Having your savings taxed 2%+ a year by inflation.

Drop your thoughts

Situation A would be a nightmare for all business owners. Deflation is a predecessor of recession/depression and growing unemployment rates.
Even if you enjoy a growing purchasing power due to falling prices, you might end up losing your job and your monthly income.
I prefer situation B, 2% inflation is really low and I prefer low inflation over deflation. Any inflation above 2% or even above 5% would lead to a bad situation for me and for many employees.

People should realize this and not really just that looking on the one side of things because if this one would really be that happening on which you would really be increasing your purchasing power and continous decrease of prices when it comes to commodities and other correlated things then you would really be losing your job as we do know that certain industries would really be that relying when it comes
to the flow of income or revenue on which it would really be cycling out on having those employment. So it would really be understandable that there would really be that having that mutual benefit.
Its true that i would rather be that be preferring on seeing that 2% inflation per year on which we are already getting used to it and doesnt really need up with that option A on which we know that
it would really be affecting various things on which we dont really like to happen.