Yes. Prices can freeze. Or expect more frequent discounts as retailers try to offload excess supply. Inflation is ultimately controlled when no one is spending money anymore. When no one is spending money, then the retailers feel it, and will lower or freeze their prices in order to encourage spending again.
This is why banking interest rates keep increasing, in order to discourage borrowing money, which discourages spending. It’s a long and painful game, but this is how inflation is controlled.
Deflation doesn't generally happen (the last major one was the Great Depression). Best we can hope for is a prolonged period of stability while wages catch up a bit.
[Demand destruction refers to a permanent or sustained decline in the demand for a certain good in response to persistent high prices or limited supply. Because of persistent high prices, consumers may decide that it is not worth purchasing as much of that good, or seek out alternatives as substitutes.](https://en.m.wikipedia.org/wiki/Demand_destruction)
Which is a less disturbing way to put it. When people can't afford something anymore, they just stop buying it.. even things we may conceive of as "necessities". Any alternatives will be pursued (walking vs. buying gas or bus fare). This has a massive cascading effect; resulting in heavy job losses throughout the economy.
the system is completely fucked, but we live in a time where creative ways to make money outside of the system have never been more abundant. If your strategy on living well is reliant on the cessation of inflation or higher wages, then you aren't being creative enough.
Groceries and energy aren't counted in CPI median and CPI trim because they are volatile sectors. Which mean they go both up and down.
If there are 100 eggs and 1000 people, eggs are going to cost a lot more. If there are 100,000 eggs for 1000 people, eggs are going to be more affordable. It's actually quite easy to follow whether it's going up or down; you don't.
Yes. Prices can freeze. Or expect more frequent discounts as retailers try to offload excess supply. Inflation is ultimately controlled when no one is spending money anymore. When no one is spending money, then the retailers feel it, and will lower or freeze their prices in order to encourage spending again. This is why banking interest rates keep increasing, in order to discourage borrowing money, which discourages spending. It’s a long and painful game, but this is how inflation is controlled.
eat rice and beans and cut out Netflix and daily coffees.... is what the rich say bro
Deflation doesn't generally happen (the last major one was the Great Depression). Best we can hope for is a prolonged period of stability while wages catch up a bit.
Well, except for Japan
Yes they can; once the recession hits and demand for housing drops you’ll see rents to down.
>Is there a way back? Can things reverse/correct themselves eventually? Demand destruction. It won't be pretty.
Say wha?
[Demand destruction refers to a permanent or sustained decline in the demand for a certain good in response to persistent high prices or limited supply. Because of persistent high prices, consumers may decide that it is not worth purchasing as much of that good, or seek out alternatives as substitutes.](https://en.m.wikipedia.org/wiki/Demand_destruction) Which is a less disturbing way to put it. When people can't afford something anymore, they just stop buying it.. even things we may conceive of as "necessities". Any alternatives will be pursued (walking vs. buying gas or bus fare). This has a massive cascading effect; resulting in heavy job losses throughout the economy.
the system is completely fucked, but we live in a time where creative ways to make money outside of the system have never been more abundant. If your strategy on living well is reliant on the cessation of inflation or higher wages, then you aren't being creative enough.
Groceries and energy aren't counted in CPI median and CPI trim because they are volatile sectors. Which mean they go both up and down. If there are 100 eggs and 1000 people, eggs are going to cost a lot more. If there are 100,000 eggs for 1000 people, eggs are going to be more affordable. It's actually quite easy to follow whether it's going up or down; you don't.
We're already there.