Is it possible to bring down prices without causing a recession?
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  Is it possible to bring down prices without causing a recession?
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Author Topic: Is it possible to bring down prices without causing a recession?  (Read 392 times)
All Along The Watchtower
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« on: May 13, 2024, 02:22:07 PM »

Not lower inflation, but an actual reduction in prices, ie. deflation. Seems like a lot of people (understandably) want lower prices, but would that necessitate a recession?

Not a rhetorical question BTW, Iím no expert on economics and Iím genuinely curious.
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wnwnwn
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« Reply #1 on: May 13, 2024, 10:15:41 PM »

Foreing raw materials going cheap?
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The Economy is Getting Worse
riverwalk3
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« Reply #2 on: May 13, 2024, 11:11:02 PM »

Productivity increases, less tariffs, government subsidies, etc.
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Benjamin Frank 2.0
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« Reply #3 on: May 14, 2024, 12:09:22 PM »

The obvious way would be for some breakthrough technology that significantly lowers the cost of energy because that would allow for across the board lower input costs.

There is the argument that actual deflation would lead to a recession as consumers would stop spending to wait for even lower prices, but there are sectors where prices have declined and that didn't stop spending.

Of course, that was mainly for computer sales and they stopped declining in price, but the quality still gets better, which isn't necessarily all that different, and people haven't stopped spending.
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