• JWBananas
    link
    fedilink
    English
    63 months ago

    If they still have a paycheck, sure. But historically, deflation leads to unemployment.

    • @hark@lemmy.world
      link
      fedilink
      English
      12 months ago

      You’ve got that backwards. People get laid off, can’t buy things, then prices go down because demand is lower.

      • JWBananas
        link
        fedilink
        English
        12 months ago

        It’s not just consumer spending that influences inflation,/deflation but also institutional spending. The consumer price index is a lagging indicator. Decreases in institutional spending precede unemployment and the eventual reduced demand for consumer goods and services. And increases in the fed rate (and/or other forces which cause the cost of borrowing money for institutions/investors to rise) generally precede that.