First of all all don't have to stop spending all together. As long as there's incentives to delay purchases even a little longer that effects the economy.
Second of all that's a global effect not just on you. If everyone is delaying their purchases sellers would need to lower their prices more to sell their items. And the more they lower their prices the more you're incentivized to delay your purchases. It's a positive feedback loop. It creates a runways effect.
Inflation on the other hand is the opposite. If you increase your prices people will buy less. You'll need to lower your prices to sell your product.
If you don't do anything inflation will take care of itself eventually and prices will level when supply and demand finds an equilibrium. If you don't do anything deflation will keep getting worse and worse indefinitely.
But it's not that I am buying food because it will be more expensive.
And all appliances are generally getting cheaper. Who would buy mentioned Nokia 3310 for $160 today? How come people have mobile phones even if they can wait for better price in a year?
Do people spend less on phones or more compared to yesterday? You're comparing the wrong things? Can I wait a year to buy the newest iPhone cheaper? Can I wait a year to buy the newest car for cheaper?
Would you buy one week worth of food right now if you know food is getting cheaper tomorrow or would you only buy what you need? Would you book your vacation with today's prices if you knew it'll be cheaper if book it later? Would you buy your plane tickets beforehand?
Would you buy new clothes now or wait until you actually need them? Sure if you can wait a year and buy clothes left from last year they'll be cheaper. That could be a nice way to be frugal.But in deflationary scenario even the newest most in fashion clothes would be cheaper.
Besides it's pointless to argue. This is not some theoretical idea. This is what happens jn deflationary economies wheater you intuitively think you yourself behave that way.
If people were keep buying things there won't be an inflation in the first place. There won't be any incentive to lower your prices if you're already selling your product. The point is once economy has a whole starts needing to lower their prices sell their product you'll need to keep lowering and lowering it unless that death sprial is interrupted somehow.
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u/Cultural-Capital-942 7h ago
For how long can you not eat, be homeless or use Nokia 3310 before you stop waiting for lower prices?
Vast majority of my actual spending is not an investment but something I want or need.