Posted 2 years ago on Dec. 15, 2014, 10:36 p.m. EST by grapes
This content is user submitted and not an official statement
Deflation is disastrous for an economy according to the economists. Recent figures show the U.S. economy's wholesale price level dropping. Consumer confidence indices reach new highs unseen for nearly eight years. Why are the consumers so confident about their economic prospects (including wage gains!) if they are heading into a disaster? Maybe it is not a disaster or they are all hallucinating.
A part of the U.S. economy has enjoyed many decades of deflationary pricing with exceptional booms of growth - the high-tech consumer goods sector. People did not cry about the lack of inflation in the sector. Why not?