All of these “technical” measures are the work of people trying to explain and come up with clever ways to argue for their jobs and continuous involvement in monetary experiments.
I want deflation to occur. There are enormous sectors where deflation is seen and everyone sees the obvious benefits[0]. But when it runs up against the work of the state printing money to finance the destruction of society, then deflation is seen as dangerous.
The main argument the inflation lovers propose is, “well if the prices keep going down then people won’t buy anything as they’ll just wait longer for the product to get cheaper.”
This is clearly false as the wants/needs are a “now” problem, and the PhDs at the FED have never seen the lines for Black Friday to purchase TVs and other consumer electronics. Why buy an iPhone 12 when in 2 years that same iPhone will be 50% off?
Not only that, there is also an increase in sales by volume which could lead to more profits by lowering the price of a widget. There are huge segments of consumers that would consume at a lower price point!
[0] Electronics/computing is an extremely obvious sign of deflation. Prices lowered, or goods improved and everyone benefits.
I want deflation to occur. There are enormous sectors where deflation is seen and everyone sees the obvious benefits[0]. But when it runs up against the work of the state printing money to finance the destruction of society, then deflation is seen as dangerous.
The main argument the inflation lovers propose is, “well if the prices keep going down then people won’t buy anything as they’ll just wait longer for the product to get cheaper.”
This is clearly false as the wants/needs are a “now” problem, and the PhDs at the FED have never seen the lines for Black Friday to purchase TVs and other consumer electronics. Why buy an iPhone 12 when in 2 years that same iPhone will be 50% off?
Not only that, there is also an increase in sales by volume which could lead to more profits by lowering the price of a widget. There are huge segments of consumers that would consume at a lower price point!
[0] Electronics/computing is an extremely obvious sign of deflation. Prices lowered, or goods improved and everyone benefits.