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When I look at the IT industry, I see deflation that has been going on for at least 50 years. Every year you can buy more computer for less money. Yet, people
by sobani 5y ago
When I look at the IT industry, I see deflation that has been going on for at least 50 years. Every year you can buy more computer for less money.
Yet, people keep buying computers. Why?
I would argue deflation has been the most significant driver of the IT industry in the last 30 years and in turn has been one of the greatest drivers of prosperity in that same period. As computers become cheaper, more people can afford more them and more value is added to society.
On the other side you have inflation that kills savings. And since most people save with a goal in mind, not because it's fun and exciting, the higher the inflation, the longer they will have to save before they reach that goal.
- imtringued 5y ago>Yet, people keep buying computers. Why? The majority of wealth is owned by the top 5%. Are they really spending a significant fraction of that wealth on computers? Deflation is never about what people buy, it's what they keep. >I would argue deflation has been the most significant driver of the IT industry in the last 30 years No it hasn't. The IT sector drives deflation and there is nothing wrong with productivity improvements. You just got cause and effect backwards. >and in turn has been one of the greatest drivers of prosperity in that same period. As computers become cheaper, more people can afford more them and more value is added to society. Inflation increases future incomes. If computers cost the same but you get higher salaries that's a good thing.