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My family needs food though. Perhaps a supermarket is a poor example. I think people might purchase fewer luxury goods in a deflationary world which TBH I'm not sure is a bad thing.

To put it another way, the model you're presenting reads well in an economics textbook and I'm sure is exactly how we justify our MMT social policy but it doesn't fully account for actual human behavior. I'll buy necessities (house/food/water/electric/communication) even in a deflationary economy.

When was the last time you went to the grocery store and thought "I better buy this milk today because my money will have less spending power tomorrow"?

by qlte3 days ago|

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An economy driven only by spending on bare essentials would be worse than Great Depression level malaise and stagnation. Where are you imagining growth would come from?

by dcow3 days ago|

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Time is money. Emotion. You think someone's not going to buy a sports car because it will be cheaper in 10 years? That's 10 years without a sports car.

They might, however, ask whether they need a car with 30% profit margins or one with closer to 10%.

I don't think the grand social goal is to maximize economic growth. It's a stable healthy society.

Right now it really just feels like people spend on whatever the hell they want to without any thought whatsoever. Consume. Yes good, consuuuume. I'd trade slower economic growth for more responsible spending...