plawolf
Lieutenant General
I don’t need to watch that to know it’s written by an economic illiterate smooth brain.
Yes, deflation is bad, but only on big ticket consumer and capital goods that people don’t need, or only need to buy once several years. Such as TVs, computers, construction machinery etc.
When the prices of those big ticket items falls, it incentives people to defer planned purchases betting on even lower prices later. That cuts demand and puts more downwards pressure on prices and it’s easy to see how that can get out of control, leading to nationally important companies and industries collapsing.
But that kind of issue simply isn’t a factor on low price everyday consumables. If the price of pork falls, who idiot is going to say, ‘no pork for dinner family, because we might have a few pence tomorrow!’ No, when the prices of everyday consumables falls, people will consume slightly more if it’s a luxury, and put upwards pressure on price until a natural market equilibrium is reached; and/or they will have more disposable income for big ticket item purchases.
This, conversely is why massive food price inflation in the west is so economically devastating. Beyond a certain point, people can’t reduce their food consumption or they die, so they need to cut back on other purchases to maintain subsistence level food consumption, which is the opposite of where economies want to be heading.
But don’t worry, I’m sure it won’t be long before even the nepotistic inbred fools infesting western MSM figures out a way to spin that as a positive, like how selfless and noble the whiteman is to reduce their consumption and embrace poverty and Jai Hind level malnutrition to help save our planet, and how selfish and callus the Chinese are for uplifting hundreds of millions of their own cities out of poverty and consume all of the world’s natural resources and emit all the carbon!
