Petah?

[u/Melodic_Judge_129]

[u/Gentle_Snail]

Deflation can also result in a very negative feedback loop, the Great Depression was a deflation spiral for example.

[u/Mayor_Death → u/Gentle_Snail]

Is deflation a cause or symptom, though? To me, it’s just a number, but I understand that it is more than that to various economic groups.

As far as I understand it, deflation indicates that prices are going down, which is a good thing to me individually.

[u/Clarknotclark → u/Mayor_Death]

Prices going down due to technology or whatever is good (eg TVs are cheaper than they used to be) but prices going down because people are choosing not to engage in the economy by not buying products or paying for services due to the fact that they will be cheaper in the future is bad.

[u/Commercial_Layer → u/Clarknotclark]

Lower the prices, and we need to have worker protections where they can't fire people just to increase quarterly profit margins to increase their stocks.

[u/MuandDib → u/Commercial_Layer]

You just want price and labor control. Join your local communist party! 😁

[u/Gullible_Increase146 → u/Commercial_Layer]

In a deflationary spiral where things keep getting cheaper and cheaper, what's the scenario where corporations just have infinite money to keep paying people at their current rate, even though the price of their products is collapsing?