charles brough Posted September 15, 2011 Share Posted September 15, 2011 May I first introduce this subject with a comment? When prices go down, people put off purchases because prices will go down and they can get the items cheaper. That reduces manufacturing and workers are laid off. So, there is even less demand. Also, government tax receipts decline as income declines. That makes the national debt more difficult to control. So, the debt grows. When prices are going up, people borrow to buy before prices go higher. The borrowing puts more money in circulation and prices continue to rise. Manufacturing increases to supply the growing demand, workers are hired and the government gets in more tax revenue. Right now, prices are relatively stable. So, we are not recovering. Link to comment Share on other sites More sharing options...
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