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Because economies aren't individuals, your spending is my income and my spending is your income. Household economics does not scale up to an economy, the rules
by gnaritas 13y ago
Because economies aren't individuals, your spending is my income and my spending is your income. Household economics does not scale up to an economy, the rules for an economy are entirely different. And I don't have to prove anything, deflation has a well established meaning: reduction of the general level of prices in an economy. One or a few sectors dropping prices simply is not what economists mean when they talk about deflation.
Now you're welcome to make up your own definitions of words, but then you're not really communicating with everyone else nor understanding what they're actually referring to since you're ignoring what they mean by those words.