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Chinese economy expected to have slipped into deflation as recovery falters
(www.theguardian.com)
this post was submitted on 08 Aug 2023
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"But deflation can hurt economic growth, as consumers will delay purchasing products if they think they will be cheaper in future."
Not if people are already mostly only buying what they need to survive.
LOL. "I think I'll starve because I bet I can save 3.5% on food prices in a month"
"I think I'll let my food rot in my broken refrigerator because I can save 3.5% on fridges in a month”
LOL. Gottem!
I mean, if it discourages people from buying new fridges when their old one still works that's good actually. A fridge that gets thrown out is just a waste, it's only due to braindead capitalist logic that this looks like growth.
Why don't you want a smaller market for fridges? It's essential product, but sustainable business if you can sustain yourself by providing services and repairs
Which is not the case for most people and certainly not the case for businesses and banks.
You're being downvoted but the amount of people I see in my work and personal life that barely make ends meet but are buying garbage on Amazon constantly is staggering. Prime days especially I was shaking my head at people bragging about the deals they got.
I don't even think you need to go to that. The vast majority of spending is discretionary. Is Jeff Bezos new yacht an essential? Deflation is particular bad for workers because it means less investment and lower salaries for those with a mortgage that's even worse. The people that benefit are those with huge stockpiles of cash.
This only really applies if it isn't just temporary though. It's also pretty for central banks to fix.
Huge stockpiles of cash seems a rather useful thing in all situations, to be fair.
So this economy was design to feed dragons, and then depend on those dragons spending money for the majority of people to even survive.