Like deflation is a bad thing.
Consumers would save billions of dollars on everything - from food to gas to rent.
Methinks they doth protest too much.
Problem is that every business is constantly losing money on inventory. They buy it at $100 and sell it for $95. Eventually this creates a supply shortage, with a huge demand.
Yes it’s great for gas consumers, while it lasts, just like it was great for homeowners when their houses were appreciating quickly in the housing inflation bubble.
But the bigger picture is important here as well. What happens if these producers go down? How will that affect the economy as a whole.
Deflation is a disaster.
That $75 for a barrel of oil is supposed to be “cheap.”
We are well conditioned.
I agree. 60 dollars per barrell seems like a good thing for us “great unwashed”
It’s good if you have no debt. But the economy is built on debt. And those who borrow will be payed future debt with dollars worth more.
It seems like a conundrum, but it’s not.
If we were a nation without debt, thing would just get cheaper and cash would be king. But we are not.
OK, it is true that they'd stop buying because they'd be jobless w/ banks charging negative interest and foreclosing on their homes, but 'not-spending' isn't the same as 'saving'.