We had a mild deflation through the 90s. There was nothing but boom in the 90s. The deflation was never officially recognized but it was there. People who got little or no increases in their nominal income got by more and more comfortable because prices at the grocery store and elsewhere (not including housing, of course) were declining slowly but steadily.That ultimately contributed a little bit to the housing bubble because people whose income was tight early in the period were not so tight later, even with the same income. They bought bigger houses than they would have or, it turns out, should have.
BS - I think the dollar I earned in the year 2000 was only worth about 80% of the dollar I earned in 1990. I didn’t see much deflation. Show me numbers instead of throwing out generic statements :)
Cornflakes (ProQuest Historic Newspapers, Star Ledger [Newark NJ], Daily Record [Morris County, NJ], SuperFoodTown [Cedar Knolls, NJ]. )
[1991] 18 oz, $2.19
[1992] 18 oz, $1.99
[1993] 18 oz, $1.29
[1994] 24 oz, $2.19
[1997] 18oz, $2.59
[1998] 18 oz, $2.29
[2000] 18 oz, $2.99
Gas (Rocky Mountain Weekly Retail) (http://www.eia.doe.gov/petroleum/data_publications/wrgp/mogas_history.html) went from $1.12 in 92 to $1.45 in 2000.