Post
Topic
Board Economics
Re: Stephen Reed's Million Dollar Logistic Model
by
ZephramC
on 12/08/2014, 15:04:10 UTC
I won't judge stupid behavior (here I am feeding the troll) but if products and services get cheaper and cheaper (price deflation)  only stupid people would risk buying 1 car today when they can buy 2 better cars for the same price next year.

Re read that Hayek book you were given at school.

What about computers, harddrives and mobile phones? They decrease in price for the same parameters and improve their parameters for the same price. And people still "risk" buying them.

What about food? Imagine food (even dinner in restaurant) gets cheaper 1.1x each day (about 2x in a week, about 15x cheaper in a month, etc.). How long would you be hungry?

I see world where people consume responsibly and think twice or three times is something is really "necessary to have today". I see world where you must think very, very carefully before you borrow money (you have to be extra sure about profitability of your investment) and saving is a virtue.