Changes

Jump to navigation Jump to search

Deflation (view source)

Revision as of 04:49, May 20, 2017

883 bytes added ,  04:49, May 20, 2017
expanded, added section on food deflation
Line 11: Line 11:  
*extreme price-cutting by sellers, which can be encouraged by technological factors such as the [[internet]] or be due to intense competition such as [[price war]]s between [[Wal-Mart]] and [[Amazon]], or between [[Apple]] and [[Google]] (now owned by Alphabet).
 
*extreme price-cutting by sellers, which can be encouraged by technological factors such as the [[internet]] or be due to intense competition such as [[price war]]s between [[Wal-Mart]] and [[Amazon]], or between [[Apple]] and [[Google]] (now owned by Alphabet).
 
*[[invention]]s that sharply increase productivity, as occurred shortly after the [[Civil War]].
 
*[[invention]]s that sharply increase productivity, as occurred shortly after the [[Civil War]].
 +
*the loss of manufacturing and other good-paying jobs, which results in less income for consumers and fierce shopping for bargains.
 +
 +
== Effect on [[Gold]], Interest rates, [[Stock market]], and [[Bonds]] ==
 +
 +
Deflation causes declines in [[gold]] prices and interest rates, but increases in the value of long-term [[bonds]] and potentially the [[stock market]] as investors seek higher rates of return than bank deposits offer.  However, rates of default on bonds can increase due to deflation as borrowers have difficult paying back the principal.
 +
 +
== Food deflation ==
 +
 +
Food deflation was rampant in 2016, due to increases in supply and low-cost competition.<ref>https://www.forbes.com/sites/phillempert/2017/02/01/food-deflation-is-changing-the-face-of-retail/#2818fc3326ec</ref>  Retail grocers lost in value despite increases in the stock market overall, including [[Wal-Mart]].
    
== References ==
 
== References ==
Aschlafly
Anthony, Irenaeus, Siteadmin, apieditor, Bureaucrats, Check users, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrators
126,208

edits

Retrieved from "https://www.conservapedia.com/Special:MobileDiff/1344829"

Navigation menu