Sunday, October 13, 2024

Rate of inflation is back down, but bringing prices back to pre inflation levels would be deflation. Do we want that?

Overall inflation is almost back down to the around 2% modest target, but some people are still not satisfied. Prices are still higher now than they were before the last period of inflation started. I guess we could try and bring prices down to below current levels. That's deflation. Do people really want deflation?

Many economists say that deflation should be avoided as it is usually associated with recession and depression. Is that what people secretly want? Do they want a collapse of the economy? Maybe people have a secret desire for less consumption and materialism. Is there a secret desire for less emphasis on wealth and money?

Falling home values might make housing cheaper, but it would put some folks "upside down" in their home; that is if they owe a mortgage.

If Trump returns to the White House, I think it's likely that the following divisiveness and instability could cause the economy to go into a tailspin. That's why a lot of money does seem to be on the side of Kamala Harris. Apparently Harris does lead in campaign contributions. It's what could be called "blue state money" as blue states do tend to be more successful economically.

I think the innovation of liberal culture tends to be good for prosperity and resilience in modern times given the "information / high tech economy." It's no longer your grandfather's economy. Personally, I still feel that a lifestyle of less consumption is desirable and better for the natural environment and I also feel that we can make personal choices toward less consumption with Harris as president.

With Trump as president, personal choices toward less consumptive lifestyles would still be possible, but the increased instability and hatred toward one another, that a Trump Presidency is likely to stir up, would be undesirable for many reasons. Economic collapse, a likely scenario under Trump, could force people into less consumption, but certain scenarios of being forced into economic turmoil would not be pretty. On the other hand, given more likely social stability and status quo under Harris, we could still make the personal choices toward more responsible lifestyles; such as in evolution versus revolution.

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