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0 pointshungryhobo4y ago0 comments

deflation is bad for the economy because it discourages spending.

Just for illustration, imagine if you know that you can buy 2 rolls of toilet papers 2 months later for the price of 1 toilet paper today, and you don't have an immediate need for toilet paper, then most likely you'd wait.

Spendings is what drives the economy and it's the circulation and liquidity that help the economy becomes more productive.

0 comments

StandardFuture4y ago

> you can buy 2 rolls of toilet papers 2 months later for the price of 1 toilet paper today,

This is called a sale and happens all the time in consumer spending. It is a well known phenomenon that many people (not all) will wait to purchase when they have more purchasing power. But it is also well known that a subset of the population will not wait.

I am not sure how you perceive your arguments as being a rigorous support of your position or a rigorous critique against the opposing position. It is truly mysterious.

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