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The Deflationary Spiral Bogey - Robert Blumen - Mises Daily: "While the idea of lower prices may sound attractive, deflation is a real concern for several reasons. Deflation discourages spending and investment because consumers, expecting prices to fall further, delay purchases, preferring instead to save and wait for even lower prices. Decreased spending, in turn, lowers company sales and profits, which eventually increases unemployment."
It's a good thing that people haven't figured out that consumer electronics prices as been falling for decades! :-p If people thought there might be a future iPhone 6 that was better or cheaper they would never buy the iPhone 5!
Oh wait -- everyone does know that consumer electronics prices go down and they still buy lots of them!
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