Inflation vs. Deflation

Please follow and like us:
20
fb-share-icon20

If deflation was truly an option we would typically wait to purchase things as they got cheaper. How often have you seen subway fare go down more than it went up? Even the cab driver is quick to tell you when gas goes up and has to charge you more. But how often do you hear them tell you gas went “back” down and they are lowering their prices.

Inflation creates urgency, an urgency to consume. In a capitalistic system it allows others to capitalize by buying now, holding it and selling later. It’s a resellers market. From the bots that buy out the tickets for sporting events and other popular events to buying and marking up the latest toy or video game craze i.e., classic NES retails for $60 everyone sells it for at least $199.

In a deflationary system there is less purchasing/consuming. If you knew prices went down from day to day you’d wait until things were cheaper before purchasing them?

Please follow and like us:
20
fb-share-icon20

Leave a Reply

Your email address will not be published. Required fields are marked *

Human Verification: In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.