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To: PGR88
You need only look at the cell phone or computing industry to know your statement is not true.

Technological advancement lowering the cost of a few devices isn't the same thing as general price deflation, which is what you're talking about.

It really is generally accepted among economists that this is bad. The reason is simple. If prices for everything are dropping then it's smart to not buy anything now. If you wait, you'll get a better price.

This suppresses economic activity. Not good for anyone in the long run.

Why do you think central banks everywhere want some small level of inflation?

68 posted on 11/28/2015 9:41:34 PM PST by semimojo
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To: semimojo
Technological advancement lowering the cost of a few devices isn't the same thing as general price deflation, which is what you're talking about.

No, technological advancement occurs everywhere. It doesn't just occur in cell phones. It occurs in everything from farming to the production of steel. Why shouldn't prices for those things decline as well?

Why do you think central banks everywhere want some small level of inflation?

The so-called target of 2% inflation is absolutely random. Can you, or anyone, tell me my its 2%? Why not 4%? 10%? Please look for anything proving 2% inflation is the magic number - you won't find it. Inflation is a gift to debtors and always and everywhere a theft from workers (whose wages always lag inflation) and savers. You should ask yourself why you trust central banks to centrally-plan the money supply, when you would scream when like-minded apparatchiks try to centrally plan health-care or the food supply.

69 posted on 11/28/2015 9:55:22 PM PST by PGR88
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