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What if you really want some candy? I think that's what the theory misses. You can only hold out for so long with certain things. If you are hungry, eventually

What if you really want some candy? I think that's what the theory misses. You can only hold out for so long with certain things. If you are hungry, eventually you'll have to buy something to eat. An extreme example: I have bought a lot of computers in my life, even though I knew their value would be close to zero within two years. And maybe there are also benefits if people only buy the stuff they actually need.

mikeash 12y ago
What qualifies as "really need," and how much of the modern economy is involved in producing that stuff? If people only buy the stuff they actually need, we on HN would all be out of jobs tomorrow. Computers, smartphones, nice cars, high-end food, good booze, entertaining movies, all of this goes away. I don't want to live in that world, personally.
- facepalm 12y ago
  So you need those things, an ongoing deflation is only a factor in your evaluation. It doesn't mean you'll never buy them. You will think "is it worth for me to hold out a little longer before buying" and there will be a threshold where you think "no" and you buy. You could just as well argue that inflation leads to a spiral of death because people won't be able to afford things. Therefore they won't buy things, nobody will produce things, and there will be no things. Sounds just as logical.
  - mikeash 12y ago
    I'm sorry, I have no idea how your reply relates to my comment.
    - facepalm 12y ago
      Well "really need" is in the eye of the beholder. Except for staying alive. Do you honestly believe because of Deflation people would only buy the barest minimum of things to keep them alive? And when would you buy a sleeping bag. Maybe it is Minus 5 degrees outside but you can survive that. After all, tomorrow the sleeping back will be 1$ less tomorrow, and after all you'll only die if it's minus 10 degrees?
      - mikeash 12y ago
        I'm not talking about deflation. I'm just addressing your idea that "maybe there are also benefits if people only buy the stuff they actually need." I don't think that this would be a good thing at all. I make no comment about what might cause this to happen, only that it's not a desirable outcome.
        facepalm 12y ago
        Only because you choose to interpret "stuff you actually need" in a nitpicking, negative way. You are not trying to understand my point. You said you need certain things like computers. So where is the problem?
        mikeash 12y ago
        I said I don't need those things, but I want them, and I think a world where people only buy what they need is a world where those things don't exist. If I misinterpreted what you meant by "stuff you actually need" then maybe you should explain what you meant, because I don't see how else it could go.

mikeash 12y ago

What qualifies as "really need," and how much of the modern economy is involved in producing that stuff? If people only buy the stuff they actually need, we on HN would all be out of jobs tomorrow. Computers, smartphones, nice cars, high-end food, good booze, entertaining movies, all of this goes away. I don't want to live in that world, personally.

facepalm 12y ago
So you need those things, an ongoing deflation is only a factor in your evaluation. It doesn't mean you'll never buy them. You will think "is it worth for me to hold out a little longer before buying" and there will be a threshold where you think "no" and you buy. You could just as well argue that inflation leads to a spiral of death because people won't be able to afford things. Therefore they won't buy things, nobody will produce things, and there will be no things. Sounds just as logical.
- mikeash 12y ago
  I'm sorry, I have no idea how your reply relates to my comment.
  - facepalm 12y ago
    Well "really need" is in the eye of the beholder. Except for staying alive. Do you honestly believe because of Deflation people would only buy the barest minimum of things to keep them alive? And when would you buy a sleeping bag. Maybe it is Minus 5 degrees outside but you can survive that. After all, tomorrow the sleeping back will be 1$ less tomorrow, and after all you'll only die if it's minus 10 degrees?
    - mikeash 12y ago
      I'm not talking about deflation. I'm just addressing your idea that "maybe there are also benefits if people only buy the stuff they actually need." I don't think that this would be a good thing at all. I make no comment about what might cause this to happen, only that it's not a desirable outcome.
      - facepalm 12y ago
        Only because you choose to interpret "stuff you actually need" in a nitpicking, negative way. You are not trying to understand my point. You said you need certain things like computers. So where is the problem?
        mikeash 12y ago
        I said I don't need those things, but I want them, and I think a world where people only buy what they need is a world where those things don't exist. If I misinterpreted what you meant by "stuff you actually need" then maybe you should explain what you meant, because I don't see how else it could go.