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Few people consider a deflating economy a "solution".

• kqr 5y ago
  The point is that artificially keeping prices low does not improve the supply. If anything, it has the opposite effect. By raising prices on the high demand stuff, you send a signal to the people that can get by with alternative stuff that now is a good time to do so. So, like, highly hypothetically, if I couldn't find a calculator for a good price, I'm in a good seat to whip out my slide rule. This gives me an edge over the people who have to pay high prices for calculators, and simultaneously smooths out demand. What's good for me is also good for the people who really need calculators.
  • engineer_22 5y ago
    Yeah, that's high school macro. I didn't need an explanation, but it seems that you do. Optimally distributing fewer goods isn't a solution to the problem. The problem is a shortage.
    • kqr 5y ago
      I still don't see how reducing demand isn't a solution to excess demand. I'm honestly confused and would be happy if you could take the time to explain.