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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What is the point your are making with your original point that deflation will never occur.
It appeared to be arguing that waiting for something to be cheaper is not a strategy people would employ. Real purchasing power is what would matter in that scenario.
And in terms of housing you need to look at the cost of monthly payments on mortgages and not absolute value. The lowering of interest rates driving housing higher is just another wealth transfer to the older generations. As interests rates rise housing will stagnate and decrease. This will require 2-3 more years as people locked in during Covid but it will create downward pressure on housing price.
Also in the 30s we had negative inflation.