I admit I don't understand economics, but I never understood the notion that if a business makes $X in year one and also made $X in year two, then they "lost money" in year two because it is assumed they must always make more in each successive year. I can only figure that inflation is assumed. If inflation is assumed, isn't the Fed failing at its mission?
... If inflation is assumed, isn't the Fed failing at its mission?
Zero inflation? Never any change in any prices? Ever? Seriously? In the real world what happens is that real people will call for a different price today than what they asked yesterday. Workers tell the boss they want a raise. Merchants may brag about their 'everyday low prices' but they'll still stick you with some new carrying charge.
Sure, Stalin boasted that the USSR never had inflation --but they sure had a lot of long lines and shortages.