Deflation Never Happens, Except Right Now - eviltoast
  • xmunk@sh.itjust.works
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    6 months ago

    I’m not convinced this is deflation as I don’t think the market ever adjusted to 12$ big whoppers - I think this is just some companies that tried to really fucking exploit price increases to get a more comfortable profit margin being taken to task by low demand.

    Let me know when the housing market corrects.

    • RestrictedAccount@lemmy.world
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      6 months ago

      Sorry for the Economic pedantry

      Demand never really changed other than what would be expected from population and technology growth. The supply of money did change. The Fed has been quietly right sizing the money supply.

      If this continues to work, it could really mean good things for Americans in the future.

      • xmunk@sh.itjust.works
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        6 months ago

        The demand curve didn’t shift - I agree. That was sort of my point - in legitimate inflation we’ll see demand curves shift as price sensitivity adjusts to the new market comprehension of purchasing power.

        The actual amount of demand (or, like, buy orders if you prefer to avoid the term demand) absolutely did decrease though because we shifted the price point along that demand curve.