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What if the deflation is caused by continuous improvement in productivity, as was the case for semiconductors? It seems like in that scenario, the continual dec
by mitthrowaway2 3y ago
What if the deflation is caused by continuous improvement in productivity, as was the case for semiconductors? It seems like in that scenario, the continual decline in prices is more than counterbalanced by a continuous increase in production volumes, resulting in profits for manufacturers despite precipitous decline in the price of the products they sell. Moore's law didn't cause investment in semiconductor fabs to dry up; just the opposite. What if that happened to all sectors at once?
- SubjectToChange 3y agoProductivity/efficiency driven deflation is almost always a good thing. The problem is when deflation is being driven by the scarcity of money or some other unsustainable mechanism