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To: no-to-illegals
Re: Why is deflation bad?

Individuals make economic decisions based on future expectations.

If you have deflation, then a rational consumer will put off all purchases until some time in the future, since stuff will be cheaper tomorrow.

When people delay purchases, economic activity decreases, and the depression gets worse ( a downward spiral).

99 posted on 02/07/2014 12:44:56 PM PST by j. earl carter
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To: j. earl carter

(imho) both deflation and inflation are different sides of the coin. Both sides of the coin (deflation and inflation) are losers (imho).


101 posted on 02/07/2014 12:48:09 PM PST by no-to-illegals (Scrutinize our government and Secure the Blessing of Freedom and Justice)
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