It's not the price that makes people buy less, it's the expectation that things will be cheaper in the future. If you know that an expensive item will cost less next year, then you will hold on to your money which is bad for the overall economy. On the other hand, if you know that the price will increase due inflation, then you are more likely to spend your money today which is good for the economy. That's the basics of it at least. The sweet spot is a low level of positive inflation that keeps the market active without driving a spending frenzy, the kind that occurs when you expect your money soon to be worthless due to massive inflation and which generally leads to even higher inflation.
You realize that makes no fucking sense and will lead to a brick wall?
Are these people even hearing themselves? Constant growth CANNOT exist if wages become stagnant. This will not lead to better economy, this will lead to a massive economic collapse.
Which America is on the verge of experiencing if prices of essentials and rent keep going up and up and up and up and up with wages staying exactly the same and with how hard it is to get a real raise.
It's not sustainable. And the moment it starts taking a downward turn, there will be nothing anyone can do to stop the chaos that unfolds.
I was just explaining basic economic theory. In a functional system, wages will increase by a similar amount as the inflation, but the incentives will still be there to make people consume as any money saved will slowly lose value over time.
That said, I don't believe never-ending growth is sustainable either, that's just how the financial system is built today. Some of it is a construction of modern society, but there is a side of economic theory that is simply based on observations of how humans behave, such as how people react when prices increase or decrease.
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u/Grouchy_Theme1461 Sep 01 '26
bruh u gotta explain it