WHO SAYS DEFLATION IS BAD FOR THE ECONOMY?

5 Responses to WHO SAYS DEFLATION IS BAD FOR THE ECONOMY?

1. barovsky says:

   August 27, 2025 at 4:01 pm

   Yes, economies of scale reduce prices but by the same token, it also reduces the surplus value that’s created. Markets get saturated with products. Hence ‘Adding value’. Cars got more complex, consumer products got more complex, each addition in complexity, became a source of surplus value added. A perfect example of this process at work was AT&T’s digitising of the voice (then data) network in the 1970s-80s. Digitising the network reduced the real cost of making a voice call as near to zero as was possible, so AT&T had to look for other ways of making a profit out of its newly created digital network. The obvious route was to own the data that was being transmitted. AT&T started buying the digital rights to content, eg, the Louvre’s content. Voila! The birth of the Internet.

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2. antoniojesima says:

   August 29, 2025 at 1:24 pm

   Good analysis. I don’t hesitate to praise them when I see them, and I don’t hesitate to accept good criticism of mine. Debate improves knowledge. I’m currently away, due to the writing process, as I told you in a recent comment, from the book on R.E.C. (revolutionary economic cycles), from general socialist economics, including the analysis of inflation, but your analysis seems high-quality to me. Especially in the last two paragraphs, where, on the one hand, you expose the true cause of inflation—greater ease of labor surplus value and profit in general—and then, you debunk some of the lies of capitalist economics (especially neoclassical) about the false problems caused by wage increases. Congratulations.
   Best regards.

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   • ucanbpolitical says:

     August 29, 2025 at 1:59 pm

     Good luck with the writing I look forward to reading the result. Kind regards

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3. antoniojesima says:

   August 30, 2025 at 1:17 pm

   Thanks. I’ll definitely send you a copy of the book.

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   • ucanbpolitical says:

     August 30, 2025 at 2:05 pm

     Thank you and all the best

     Reply