falling prices tend to discourage consumers from spending
I don’t know man, maybe i’m just dumb but when prices keep rising to the point i can’t afford to buy anything but the bare necessities of life that kinda tends to discourage me from spending, you know?
I guess that’s on me for not taking econ 101, if i did i would have known that the right thing to do to avert a financial crisis is go buy a new TV with money you don’t have. Thank you brilliant economic geniuses at Fortune for teaching me!
Prices falling driving lower demand makes a lot of sense for things that people don’t need. But for things like the rent, food, and healthcare that have been going nowhere but up for decades, there is obviously some inelasticity of demand in play. Expensive items that people often need like cars will see pent up demand if prices stay high for a long time. That’s one reason why EVs don’t sell well in the US anymore, because the people who can afford to spend $60000 on a huge SUV and want it to be an EV have mostly already done that. Meanwhile, the rest of us are broke!
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I don’t know man, maybe i’m just dumb but when prices keep rising to the point i can’t afford to buy anything but the bare necessities of life that kinda tends to discourage me from spending, you know?
I guess that’s on me for not taking econ 101, if i did i would have known that the right thing to do to avert a financial crisis is go buy a new TV with money you don’t have. Thank you brilliant economic geniuses at Fortune for teaching me!
Prices falling driving lower demand makes a lot of sense for things that people don’t need. But for things like the rent, food, and healthcare that have been going nowhere but up for decades, there is obviously some inelasticity of demand in play. Expensive items that people often need like cars will see pent up demand if prices stay high for a long time. That’s one reason why EVs don’t sell well in the US anymore, because the people who can afford to spend $60000 on a huge SUV and want it to be an EV have mostly already done that. Meanwhile, the rest of us are broke!
It’s as if their real job is to produce propoganda to help their rich bosses (and themselves) get wealthier