As I said the my first comment, I’m talking about stuff that may be shelved a longer time. And at large scales, small percentages do matter significantly.
With inflation, having something shelved only looses value if something newer and better comes out. Deflation would add deflation itself as another risk.
To put it in other words: I have to raise the price for my items in stock along with deflation to make the trade worthwhile, which in turn contradicts deflation since then the value you get for your money is the same.
The exaggeration describes hyperdeflation which is a completely different beast, so it’s not illustrative of the impacts of deflation in general. Either way, you’re focusing on the raw price amount without considering the value of the items being exchanged. If anything, deflation would help with selling since if a store has an item on sale for $10, a year later at 2% deflation selling for the same price it’d be worth 20 cents more in relation to the previous year’s dollar value and the store wouldn’t have to increase the price to make up for a loss in the value of the dollar. From the customer’s perspective, they don’t see a price increase even though the value of their dollar has increased.
Of course, im exaggerating for simplicity.
As I said the my first comment, I’m talking about stuff that may be shelved a longer time. And at large scales, small percentages do matter significantly.
With inflation, having something shelved only looses value if something newer and better comes out. Deflation would add deflation itself as another risk.
To put it in other words: I have to raise the price for my items in stock along with deflation to make the trade worthwhile, which in turn contradicts deflation since then the value you get for your money is the same.
The exaggeration describes hyperdeflation which is a completely different beast, so it’s not illustrative of the impacts of deflation in general. Either way, you’re focusing on the raw price amount without considering the value of the items being exchanged. If anything, deflation would help with selling since if a store has an item on sale for $10, a year later at 2% deflation selling for the same price it’d be worth 20 cents more in relation to the previous year’s dollar value and the store wouldn’t have to increase the price to make up for a loss in the value of the dollar. From the customer’s perspective, they don’t see a price increase even though the value of their dollar has increased.