van_driver | 07-15-2010 07:01 AM | Quote:
Originally Posted by taylor192
(Post 7029540)
Dropping prices means deflation. Deflation means the economy is in the shitter. The economy in the shitter means you might not have a job. Not having a job means you cannot afford $1 pizza.
Inflation is a good thing, now go learn why. | Dropping the price on something doesn't necessarily cause deflation. Giving discounts and rebates won't cause you to lose your job, even for long periods of time. For example, they never drop prices on cars, they only give "cash back" and "rebates".
High Inflation doesn't mean we are all going to be balling. Inflation brings high prices where only manufacturers and a few industries make a lot of money. Even though tons of people will be better off but it won't bring everyone's living standards to a higher level. Optimal inflation is 2-4% per year (correct me if im wrong), which is not much year to year, but long term is huge. |