Huh? Are you saying people are better off than say, in the 1950's with a single wager-earner?
Why is deflation bad?
- Thread starter noob_trad3r
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Huh? Are you saying people are better off than say, in the 1950's with a single wager-earner?
Yep, sure am... They (the American people, that is) are also living longer (life expectancy at birth was 68.2 in 1950 vs 76.7 in 1998) and are growing taller (although not as fast as they were and not as fast as people in some countries in Europe, such as Netherlands and the Scandies). Reason I mention height is that a population growing in stature is associated with improved healthcare and nutrition. Average height has been used in academia as one of the measures of the standard of living. So yes, I would say that by pretty much any metric I can think of, the American population is definitely better off than in the 50s.
It is definitely true, the American people are more and more long life
You are an idiot. Americans are fatter, less educated, much lower morals, way worse work ethic not to mention we believe everything is owed to us. Nothing is owed to us. Our life expectancy is longer but how about our quality of life on all these drugs that just screw up your system. I think that a little of the work like we did in the 50's would do this country some good.
"poor quality of reasoning"
it is an old story. if you can't win on the facts attack the person. I presented very clear facts which is alot more than the lack of self control you show by personalizing. my line of reasoning is based upon facts while yours is based upon ridiculous suppositions that with a wee bit of work you can come up with a better theory or my reasoning is poor because u say so.
if you don't believe that creating more money results in inflation just say it instead of hinting at it.
you are right on target. We are told by economists and the media that deflation is always a very bad thing but that is only true from the perspective of corporate America and the wealthy. It really is about class war. Deflation can benefit the lower class and wage-earning members of the middle class who do not own equity investments, at least for those that keep their jobs through the tough times. It is the wealthy with business/equity ownership interests that stand to lose the most.
i agree, higher life expectancy does not necessarily mean a better standard of living.Many Amerikans are now OBESE, suffer from terrible health problems, have very nasty mannerisms and is busy playing XBOX generally being a lazy bum
Deflation can be good or bad depending upon whether it is created by rising productivity or monetary manipulation. However, deflation is not likely to be ..how can it be when i canât post the comment like this into this blog, just take a rest and have more fun , do something and drink a cup of coffe
Deflation is a boon to the thrifty in any society. The Fed has manipulated the money supply and has rewarded the prodigal at the expense of prudent savers.
virtually everyone is unprepared for deflation, because virtually everyone has leveraged themselves to the hilt. Years of low- and no-interest financing schemes on houses, autos, furniture, electronics, etc. have created years of negative savings rates for Americans. Furthermore, many American householdsâ savings are tied up in investments that will go sour in deflation: i.e. stocks, bonds, commodities and real estate. As if a wipeout of life savings isnât bad enough, declining prices (one of the effects of deflation), means lower profits for companies. In turn this means layoffs and increased unemployment. More on that when we discuss the price and economic effects of deflation and the deflationary spiral.
But just because you have a stable job and a cash reserve doesnât mean deflation wonât rear its ugly head in your life. Say you not only keep your job but you get a promotion, and the promotion requires you to move. In order to acquire new residence, you must sell your house. In a deflationary environment, plummeting housing prices can make selling difficult, especially if you expect to make a profit. Many sellers are forced to sell at a loss, which further begets the effects of deflation in housing.
But just because you have a stable job and a cash reserve doesnât mean deflation wonât rear its ugly head in your life. Say you not only keep your job but you get a promotion, and the promotion requires you to move. In order to acquire new residence, you must sell your house. In a deflationary environment, plummeting housing prices can make selling difficult, especially if you expect to make a profit. Many sellers are forced to sell at a loss, which further begets the effects of deflation in housing.