This is just pathetic fearmongering, or whatever “the enemy is getting weaker” propaganda is called. Deflation, as liberals understand it, is literally a fake phenomenon. Even if PRC disn’t have controlled markets, price reductions causing the collapse of entire businesses on a large scale is a fiction. It doesn’t happen in free markets for obvious reasons, and it wouldn’t happen in controlled markets for even more obvious reasons.
The truth is that deflation represents a redistribution of wealth towards working class people, because wages generally remain steady thus increasing everyone’s relative purchasing power while harming investment portfolios. That’s why they have to spread the fiction that deflation is a bad economic indicator meanwhile inflation is just business as usual.
It’s very much ingrained to the “theory” as well. Any econ class will talk about deflation causing a cycle of doom and gloom, and any mention will be accompanied by something along the lines of “inflation maybe bad, deflation way worse”
This is just pathetic fearmongering, or whatever “the enemy is getting weaker” propaganda is called. Deflation, as liberals understand it, is literally a fake phenomenon. Even if PRC disn’t have controlled markets, price reductions causing the collapse of entire businesses on a large scale is a fiction. It doesn’t happen in free markets for obvious reasons, and it wouldn’t happen in controlled markets for even more obvious reasons.
The truth is that deflation represents a redistribution of wealth towards working class people, because wages generally remain steady thus increasing everyone’s relative purchasing power while harming investment portfolios. That’s why they have to spread the fiction that deflation is a bad economic indicator meanwhile inflation is just business as usual.
It’s very much ingrained to the “theory” as well. Any econ class will talk about deflation causing a cycle of doom and gloom, and any mention will be accompanied by something along the lines of “inflation maybe bad, deflation way worse”
Interesting, do you know any literature that talks more about this?