“Although lower prices may seem like a good thing,’’ Banco de España, the Spanish central bank, says on its website, “deflation can in fact be highly damaging to the economy.’’ How so? Mainly because falling prices tend to discourage consumers from spending. Why buy now, after all, if you can purchase what you want — cars, furniture, appliances, vacations — at a lower price later?

We’re not going to buy that stuff now anyway because it’s too expensive you twits

The reality is that the economy’s health depends on steady consumer purchases. In the United States, household spending accounts for around 70% of the entire economy. If consumers were to pull back, en masse, to await lower prices, businesses would face intense pressure to cut prices even more to try to jump-start sales.

We can’t pull back en masse on purchasing groceries

In the meantime, employers might have to lay off waves of employees or cut pay — or both.

They’re already doing that! They’ve been doing that!

Another article telling us we’re wrong to be pissed off about inflation and high prices. How about some more articles about wage stagnation, wage theft, and wealth inequality?

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Hmm, wasn’t the crash actually caused by the stock market crashing because of overvaluation? Kinda like how everything is being overvalued now to extract every last cent out of consumers?

Okay, so can I have higher wages to pay the higher prices?

“No that’s inflation lol”

Every time someone says “economy” I change it to “rich fucks” in my head and it works amazingly well. Lower prices are bad for the economy rich fucks. The economy is rich fucks are really strong right now. Inflation bolsters the economy rich fucks, this move would destroy the economy rich fucks…

I need a bit of dark humor like that in my life, so I don’t feel too bad whenever I look at my bank statement…

Economists* are impressive for one reason only: their ability to talk while simultaneously sucking every billionaire’s dick at once.

*MOST economists.

Economist don’t care about you and me.

This is the best summary I could come up with:

Who wouldn’t want to fire up a time machine and return to the days before the economy rocketed out of the pandemic recession and sent prices soaring?

But those incremental improvements are hardly enough to please the public, whose discontent over prices poses a risk to President Joe Biden’s re-election bid.

“Although lower prices may seem like a good thing,’’ Banco de España, the Spanish central bank, says on its website, “deflation can in fact be highly damaging to the economy.’’

If food or gasoline prices were to tumble, households would surely find it less painful to afford groceries or their commutes to work — as long as they remained employed.

But the exception was a doozy: From 1929-1933, U.S. economic output plummeted by a third, prices sank by a quarter and the unemployment rate shot up from 3% to a crushing 25%.

Those collapsing assets, in turn, can topple banks that hold crumbling investments or that made loans to struggling real estate developers and homebuyers.

The original article contains 877 words, the summary contains 166 words. Saved 81%. I’m a bot and I’m open source!

The deflationary spiral:

• Falling prices discourage spending (or encourage waiting to spend)
• Companies get less income, so they cut costs, laying people off or forcing people to accept wage cuts
• Workers have less spending power
• Consumer spending falls, causing businesses to cut prices just to move existing inventory
• Repeat

Falling prices might sound nice in the abstract, but almost everybody has a job that depends on someone else’s spending. If their spending drops enough, your job is in jeopardy. If you lose your job, then it doesn’t really help you that prices have fallen.

Deflation means that the value of the money people owe would be increasing.

Not a concern for the university socialists whose parent paid for their university from an ample college fund. But for working class people that owe money on a car or a house this would be bad.