Decreasing inflation does not mean that prices are going down. That would be deflation, which is poison to an economy because people hold onto their money instead of circulating it through the economy.
Sorry, didn’t mean to make it sound like I want deflation. I just want better purchasing power to workers that will accomodate the increased cost of goods which I don’t see reversing in the long term because of the “techinically” strong market.
But a side-note on the end of your comment, we sort of want people to stop circulating money. That’s why there are layoffs and that’s why it is an issue that people are continuing to buy things in the service industry especially (although it doesn’t help that the cost of necessary goods are still extremely high), especially with unemployment as low as it is. Granted this is all through the lens of the American economy for me and my super basic understanding of things lol
Decreasing inflation does not mean that prices are going down. That would be deflation, which is poison to an economy because people hold onto their money instead of circulating it through the economy.
Sorry, didn’t mean to make it sound like I want deflation. I just want better purchasing power to workers that will accomodate the increased cost of goods which I don’t see reversing in the long term because of the “techinically” strong market.
But a side-note on the end of your comment, we sort of want people to stop circulating money. That’s why there are layoffs and that’s why it is an issue that people are continuing to buy things in the service industry especially (although it doesn’t help that the cost of necessary goods are still extremely high), especially with unemployment as low as it is. Granted this is all through the lens of the American economy for me and my super basic understanding of things lol