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And don't think deflation hasn't been happening already in the U.S. The only difference is, unlike Japan, unscrupulous U.S. food companies have been cutting ing
by ktRolster 10y ago
And don't think deflation hasn't been happening already in the U.S. The only difference is, unlike Japan, unscrupulous U.S. food companies have been cutting ingredient quality and content size, rather than raising price for the past 10 years.
You seem to have gotten confused between inflation and deflation. With deflation, prices decrease, not increase.
- pcurve 10y agoYour last paragraph is correct, but I was using the term in more macro environment context. 25 year of unchanged nominal price is symptom of deflationary environment. The reluctance by the Japanese company to raise price even when costs were going up speaks volume about the strong downward pricing pressure in the Japanese market. Though not to the same degree, similar environment has been brewing here in the U.S. for awhile. Companies don't want to raise prices, and only do so as a last resort. If economy was better, they would do so without fear that their competitors would not follow suit.
- mindslight 10y ago> strong downward pricing pressure in the Japanese market Downward pricing is what one would expect in any stable market, given that price optimization is the primary market mechanic. Technology is getting ever-better, so it takes ever-larger efforts to erase its gains and create the artificial inflation prescribed by the central banksters.