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If prices decrease and salaries don't, doesn't that indicate economic prosperity?
by khelavastr 2y ago
If prices decrease and salaries don't, doesn't that indicate economic prosperity?
- jarsin 2y agoIn a perfect world you might think that but those 2 things rarely go together. Deflation is much worse than inflation as it stops everyone from spending leading to a death spiral that builds on itself. Japan had little wage growth and deflation for 30 years. I'm sure the majority of Japanese would tell you it has not been good for them.
- fspeech 2y agoIt depends. Technology products have been deflating for decades. It is actually what keeps the overall inflation in check.