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I think you're only looking from a consumer perspective, not a business perspective. What is my incentive to start a business when it's constantly a race to the

I think you're only looking from a consumer perspective, not a business perspective. What is my incentive to start a business when it's constantly a race to the bottom? Furthermore, why invest in a business? It'd be stupid to put $1000 in an investment when the spending power of that money will only increase over time, and you'll never get your money back. No, I don't think you'll find many economists who like deflation. It doesn't spread prosperity, it spreads laziness.

mikecane 14y ago
Then explain to me why Bezos has no problem constantly cutting prices for his cloud services. Why Jobs priced the iPad at $499 for the base model when even he acknowledged the buzz was $999 -- and he might have even gotten that. >>>It'd be stupid to put $1000 in an investment when the spending power of that money will only increase over time, and you'll never get your money back. How do you know you'll never get it back? The entire point of investing is to make money faster than via labor or interest or prices artificially increasing (a bubble).
- jbooth 14y ago
  He's cutting prices, but we are not in a deflationary environment. I think you're a little mixed up on the definitions of "inflation" and "deflation".
  - mikecane 14y ago
    Yes, I see why you would think that. And it's perhaps because I'm looking at it from a consumer standpoint too.