Comment on Why Kamala Harris Will Not Bring Prices Down. Her Plan Needs Inflation | dlacalle.com

ChonkyOwlbear@lemmy.world ⁨2⁩ ⁨months⁩ ago

Bringing prices down means deflation and that is terrible for the economy. It means the real value of debt increases which does incentives investment. It also risks a deflationary spiral which is a situation where decreases in the price level lead to lower production, which in turn leads to lower wages and demand, which leads to further decreases in the price level.

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