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Inflation could turn to Deflation in America - Is that a good thing?
Posted: May 9th, 2023, 3:10 pm
by Winston
This economist below says that the inflation in America could quickly become deflation. Isn't that a good thing if prices come down? Why or why not? If cost of living in America went back to what it was in the 50s and 60s then America would definitely be a much better place to live. What do you guys think?
Re: Inflation could turn to Deflation in America - Is that a good thing?
Posted: May 9th, 2023, 3:30 pm
by MrMan
Winston wrote: ↑May 9th, 2023, 3:10 pm
This economist below says that the inflation in America could quickly become deflation. Isn't that a good thing if prices come down? Why or why not? If cost of living in America went back to what it was in the 50s and 60s then America would definitely be a much better place to live. What do you guys think?
From what I have read, deflation, especially if it is serious, can be dangerous. Stores shutting down is terrible. Not having access to goods and services is difficult. Of course with the Internet, there are other places to go... if the supply chain holds up.
Have any of his predictions happened?
Re: Inflation could turn to Deflation in America - Is that a good thing?
Posted: May 9th, 2023, 3:44 pm
by Cornfed
The reason deflation is bad in the current system is that it means businesses can't take on and discharge debt. Since money in the system is created as debt, this effectively destroys the system.
Re: Inflation could turn to Deflation in America - Is that a good thing?
Posted: May 20th, 2023, 11:23 pm
by Winston
Has America ever had deflation before? Doesn't it mean prices on everything would go down? Trump said he lowers the cost of energy then prices will come down because everything is connected to that. Is that so?
Re: Inflation could turn to Deflation in America - Is that a good thing?
Posted: May 21st, 2023, 7:11 am
by Cornfed
Winston wrote: ↑May 20th, 2023, 11:23 pm
Has America ever had deflation before?
In the depressions of the 1930s and 1890s.
Re: Inflation could turn to Deflation in America - Is that a good thing?
Posted: May 21st, 2023, 11:08 am
by fschmidt
What a stupid video. No mention of interest rates or the money supply.