...services, goods and services which are just piling up in inventory at businesses which must soon either discount heavily, or close their doors. Even if they do close their doors, and the inventory is sold at a vast discount, it remains unsold to the ultimate consumer because of not just stagnant demand, but no demand at all.
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Agreed. And yet, how often is the positive economic report based on “climbing inventories”? That measures expectations and the negative report is always preceded by *unexpected*.
Nothing works. Nothing makes sense. Mandated taxes are reported as *growth in consumer spending*.
One quibble: how can one have an *inventory* of services? Services=time. Each service provider has so much time available vs.so many clients. The only way services can be *stockpiled* as *inventory* is when the number of clients declines versus the providers’ available time to deliver them. When that happens, fees must be cut. Therefore, an increased inventory of services equals less economic activity due to a declining market.
To most of us born in the last 70 years, we’re entering the Twilight Zone in economic terms. Deflation. Sounds good, but outside of the Pats, it is going to screw us all.