Because of how corps react to lower prices. They would just lay everyone off. Deflation itself isn't the issue, it's how little protections actual working people have and how much incentive corps have to keep their stock price high. Being able to sell something for less means less profit for the corps which is a big problem for corp leadership. So the solution is to temporally increase profits by getting rid of staff.
Ahh ok so basically it all just comes down to corporate greed determining how much we should all suffer and be punished for even considering the idea that their stock price doesn't have to keep going up every 3 months and that they might be able to survive on 5% less profit this year compared to last year. Got it.
Ahh ok so basically it all just comes down to corporate greed determining how much we should all suffer and be punished
Yes. That's also what inflation is. With a fiat currency, the amount of little paper slips in the world shouldn't make them any less valuable, since they're worthless to begin with except for the faith we have in them.
If the mint had a top-secret extra basement with a 1000 off-the-books printing machines going 24/7, and none of the corpos knew about it, prices wouldn't budge even 1%. As soon as some CEO found out, though, prices would jump even if that money was just sitting in a pile without going anywhere.
since they're worthless to begin with except for the faith we have in them.
That doesn't change the mechanics of supply and demand.
As soon as some CEO found out, though, prices would jump even if that money was just sitting in a pile without going anywhere.
If I, a non-CEO, found out the government was, by all appearances, getting ready to blow the money supply wide open I'd expect big changes in prices too.
My point is, it's not a law of the universe. It requires specifically rich people to know about it before any effects happen at all. It's literally Schroedinger's Inflation. Until someone with power observes the state of the money supply, nothing at all changes.
I still don't have any more money than I did before I saw the hidden money pile, dipshit. Only rich people can just start buying willy-nilly on a tip, which is my fuckin' point.
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u/azac24 5h ago
Because of how corps react to lower prices. They would just lay everyone off. Deflation itself isn't the issue, it's how little protections actual working people have and how much incentive corps have to keep their stock price high. Being able to sell something for less means less profit for the corps which is a big problem for corp leadership. So the solution is to temporally increase profits by getting rid of staff.