"You seem to be describing not deflation but the lowering of the prices of specific commodities due to price pressure arising from increases in productivity."
we agree . my point is only that at least in france, many people mix the reduction of price with deflation-depression as 1930+. when Uber or AirBnb,, or Amazon, or google lower the price to access to service, they say it is deflation and this should be stopped with taxes, with monopolies and fixed rates. in fact for French elite, the use of public money and debt is like cocaine for a rockstar... they want inflation to shave the lender, because unlike the king of france they cannot burn the Templar, pogrom the Jewish, and expulse the lombards. To a lesser degree it seems valid for western elite. US is simply printing numbers, which serves not to create price inflation, or to increase useful investments, but to inflate asset bubbles where the price is virtual. this is why people have the impression that inequalities grows, but most of what people like Piketty see as wealth is pure wind. This is where Hernando De Soto is bashing those Euro/US-centric accountants. 2015-08-18 4:35 GMT+02:00 Eric Walker <[email protected]>: > On Thu, Aug 13, 2015 at 3:25 AM, Alain Sepeda <[email protected]> > wrote: > > >> deflation is natural and sane in economies where there is growth of >> productivity. >> This is a good way to increase wages. >> > > You seem to be describing not deflation but the lowering of the prices of > specific commodities due to price pressure arising from increases in > productivity. I'm going to hazard a guess that economists don't think of > this kind of downward price pressure as deflation, especially of the kind > seen in the Great Depression. Deflation in that instance was across the > board. If you held on to your money, it would be worth even more a week > later. There was an incentive to refrain from spending and to keep your > money in a can under your mattress. > > In a healthy economy, you might want to wait for two or three months to > purchase that television or stereo system or car, because the price might > be about to come down; but while you wait your money would become worth a > little less overall because of a slight amount of inflation. If you did > not intend to spend it you would want to put it to some other good use -- > in an investment account or a savings account. > > Eric > >
