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(5,252 posts)
11. That's deflation. You don't want that
Sun Jan 31, 2016, 01:34 PM
Jan 2016

A number of readers have asked me to explain why deflation is a bad thing; and the truth is that while I’ve alluded to the issue a number of times, I’m not sure if I’ve ever laid out the whole case. So here goes.

...the argument that deflation is a bad thing is also an argument saying that some economic problems get worse as inflation falls, and that too low an inflation rate may actually be economically damaging.


In regards to groceries...climate change unapatriciated Jan 2016 #1
I was always told by retailers nilesobek Jan 2016 #8
We are starting to see a shortage in produce unapatriciated Jan 2016 #16
actually milk, at least, seems to be about $1 a gallon less than last year hfojvt Jan 2016 #2
Not around here. Pretty much the same price. hobbit709 Jan 2016 #6
Gasoline forms a fairly small part of the cost of most goods muriel_volestrangler Jan 2016 #3
You are right but when gas is high they use the excuse to raise groceries yeoman6987 Jan 2016 #5
Most grocery stores don't bring down their prices when gas is cheaper meow2u3 Jan 2016 #19
Basic Capitalism - prices based on seller willing to sell at and market willing to bear it. NutmegYankee Jan 2016 #4
Once the price goes up it rarely comes down. SamKnause Jan 2016 #7
So we are being ripped off nilesobek Jan 2016 #10
Yes we are being ripped off and forced to buy overpriced necessities. SamKnause Jan 2016 #13
Lower oil prices, at present levels of production cost, are not economically beneficial Spider Jerusalem Jan 2016 #9
Wow. Two billion a day losses. nilesobek Jan 2016 #14
It probably wasn't anticipated Spider Jerusalem Jan 2016 #15
That's deflation. You don't want that WhaTHellsgoingonhere Jan 2016 #11
Amazon, Walmart, Target et al have an even bigger monopoly on consumer goods JCMach1 Jan 2016 #12
Our local HyVee grocery raised prices substantially after the first of the year. Frustratedlady Jan 2016 #17
Because gasoline is only a small input for other prices. Zynx Jan 2016 #18
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