Corporate Media Has Decided Your Suffering Is Inconvenient

[Silent Type]

2. One should read the WaPo article-- ". . . . . . Ironically, falling prices can both signal a recession and trigger one."

"“Think about what would happen if the price of all goods would drop to the pre-pandemic level,” said Francesco Bianchi, who chairs the economics department at Johns Hopkins University. The inflation of recent years also has driven up workers’ wages. If wages stay high but the price of goods fall, companies won’t make enough profit to pay their employees. “That would make the cost of hiring workers extremely high, and that might trigger a recession — and then the recession creates even more expectation for lower prices. This is why economists are very concerned about deflation.”


"Laura Veldkamp, a professor at Columbia Business School, said even the expectation of lower prices can trigger a recession. “If I thought that was going to cost less tomorrow, why would I buy it today? … As soon as we believe the prices are going down, demand will plummet and we’re likely to immediately have a recession,” she said. “Price declines are typically associated with really severe negative outcomes.”

"And while Americans might be clamoring for lower prices, surveys suggest they don’t actually expect it to happen. According to the University of Michigan’s Survey of Consumers, most respondents expect inflation to go higher in the next year. . . . . ."
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Makes sense to me, but you gotta read the article.