16
submitted 1 year ago by sik0fewl@kbin.social to c/canada@lemmy.ca

The popular idea that prices should fall to previous lows gives most economists chills. Deflation is bad for everyone, they say.

you are viewing a single comment's thread
view the rest of the comments
[-] SkepticalButOpenMinded@lemmy.ca 5 points 1 year ago

Most of these worries are of long term deflation. If deflation is temporary and is perceived as “prices going back to normal”, as it is with cars and GPUs, I don’t think most of these worries would manifest. People aren’t holding off on buying a car because they think car prices will continue to fall long term.

It should be noted, however, that there are many ways in which deflation actually helps the rich more than the poor. Since money is worth more over time, it favours those who already have money. Conversely, inflation can surprisingly help the poor by making debt worth less.

But this assumes that rich people aren’t the very ones profiting off of inflation by price gouging, rent seeking, and manipulating the market, which they absolutely are. So I very strongly doubt that short term deflation hurts the poor and working class.

[-] Rocket@lemmy.ca 1 points 1 year ago* (last edited 1 year ago)

inflation can surprisingly help the poor by making debt worth less.

What kind of poor person is being extended credit? That would be lender suicide. Debt is a tool of the rich.

[-] SkepticalButOpenMinded@lemmy.ca 1 points 1 year ago

Poor people have tons of debt. Student loans, credit cards, car loans, rent-to-own furniture/appliances, pay day loans, medical debt in the US and recently installment purchases online. A lot of these are definitely extended to poor and lower middle class people.

this post was submitted on 21 Sep 2023
16 points (76.7% liked)

Canada

7185 readers
290 users here now

What's going on Canada?



Communities


🍁 Meta


🗺️ Provinces / Territories


🏙️ Cities / Local Communities


🏒 SportsHockey

Football (NFL)

  • List of All Teams: unknown

Football (CFL)

  • List of All Teams: unknown

Baseball

Basketball

Soccer


💻 Universities


💵 Finance / Shopping


🗣️ Politics


🍁 Social and Culture


Rules

Reminder that the rules for lemmy.ca also apply here. See the sidebar on the homepage:

https://lemmy.ca


founded 3 years ago
MODERATORS