What's wrong with PRICE-GOUGING? during a DISASTER or any other time?

[Canard DuJour]

Nah. 2% deflation means the same money having 2% more purchasing power, not 2% of your money mysteriously disappearing. If you can get 1% more money as well, you should go for it.

Deflation acts as a floor on investment, the more deflation there is the more investment is considered not worth doing.

Right, but not because any money mysteriously disappears. Deflation is persistent drop in general price levels. It means you're less and less likely to get a positive return on investment in actual production since stuff is selling for less and less, eating away the difference between production cost and revenue. Profitable investments become marginal and marginal investments become unprofitable. Meanwhile consumers defer discretionary spending (because it'll be cheaper later), exacerbating the problem. Safer to sit on money which is increasing in value. Vice versa with inflation. What Horatio Parker said.

Since you are talking about 2% disappearing you still don't get the distinction. In true investment all your money disappears--it's replaced with the profit from whatever that money bought. That's at the new value of money.

Irrelevant.

 

[Loren Pechtel]

Nah. 2% deflation means the same money having 2% more purchasing power, not 2% of your money mysteriously disappearing. If you can get 1% more money as well, you should go for it.

Deflation acts as a floor on investment, the more deflation there is the more investment is considered not worth doing.

Right, but not because any money mysteriously disappears. Deflation is persistent drop in general price levels. It means you're less and less likely to get a positive return on investment in actual production since stuff is selling for less and less, eating away the difference between production cost and revenue. Profitable investments become marginal and marginal investments become unprofitable. Meanwhile consumers defer discretionary spending (because it'll be cheaper later), exacerbating the problem. Safer to sit on money which is increasing in value. Vice versa with inflation. What Horatio Parker said.

Since you are talking about 2% disappearing you still don't get the distinction. In true investment all your money disappears--it's replaced with the profit from whatever that money bought. That's at the new value of money.

Irrelevant.

Calling it irrelevant doesn't make it so.

 

[laughing dog]

Calling it irrelevant doesn't make it so.

Saying it isn't irrelevant does not make it so either.

 

[Crazy Eddie]

Nah. 2% deflation means the same money having 2% more purchasing power, not 2% of your money mysteriously disappearing. If you can get 1% more money as well, you should go for it.

Deflation acts as a floor on investment, the more deflation there is the more investment is considered not worth doing.

Right, but not because any money mysteriously disappears. Deflation is persistent drop in general price levels. It means you're less and less likely to get a positive return on investment in actual production since stuff is selling for less and less, eating away the difference between production cost and revenue. Profitable investments become marginal and marginal investments become unprofitable. Meanwhile consumers defer discretionary spending (because it'll be cheaper later), exacerbating the problem. Safer to sit on money which is increasing in value. Vice versa with inflation. What Horatio Parker said.

Since you are talking about 2% disappearing you still don't get the distinction. In true investment all your money disappears--it's replaced with the profit from whatever that money bought. That's at the new value of money.

Irrelevant.

Calling it irrelevant doesn't make it so.

Cool story, bro. It's still irrelevant.

 

[coloradoatheist]

So I just wanted to make sure. Under 2% inflation to earn a 4% return your investment would need to earn 6%. Under 2% deflation the investment would only need to earn 2%. So the argument is that its easier to make the 6% return under inflation than 2% under deflation?