3 ms·
Scarcity because nobody is working. It's not a contradiction. Inflation encourages economic activity - work. Deflation discourages it.
by vkou 3y ago
Scarcity because nobody is working. It's not a contradiction. Inflation encourages economic activity - work. Deflation discourages it.
- mitthrowaway2 3y agoI think you're being downvoted because you haven't explained why the store wouldn't raise prices before the shelves go empty.
- vkou 3y agoIf all the stores did that, and people would actually buy goods at those prices, you'd be in an inflationary economy, not a deflationary one. What do you think inflation is? It's a reduction in the value of money, relative to goods. You can't say that the solution to the problems of deflation is inflation. (I mean, you can, that is my whole point... but it fully undermines the original argument.)