Quote:
Originally Posted by Shazam
Housing? Nope. Long term trend is always upward.
Food? Nope. Long term trend is always upward.
Do you understand the ramifications of a deflationary economy?
Macbooks being cheaper does not mean anything.
Deflation is a macroeconomic phenomenon. You can't apply it to something like a specific manufacturer's product.
Hell let's look at video cards. Are those cheaper?
You must be young or rich. I bought my first house in Calgary in 2002 for $191K. Good luck with that now.
My parents bought their first house in Calgary in 1987ish for $90K.
My wife's parents bought their first house in Calgary in 1979ish for $30K.
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Who's talking long term? You responded to this:
Quote:
Originally Posted by Bill Bumface
In the scenario wages aren't keeping up, doesn't affordability kick in and people just can't buy stuff anymore and you start to get supply increases and price drops?
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by saying "deflation never occurs." No one was talking about economic deflation, just prices of some goods potentially coming down in the short term because of lack of demand during a recession. Which is exactly what happens. Demand is lowered which leads to oversupply and reduced prices, which reduces the inflation rate. That's the whole point of central banks raising interest rates; they want to dampen demand. Just today, Target lowered their forward guidance saying that their inventories were piling up and they'd be forced to lower prices and reduce their margins to clear out the excess of goods they have.