Can they ever be reset? Or will one day a regular chocolate bar cost for example €50? House that costs €200k cost €1,000,000? Will the likes of the euro or US dollar one day be the same as currencies such as the YEN where “1” of them is essentially worthless?
In: Economics
Because of all the obligations/debts/wages/etc agreed to in present day dollars.
Let’s take something like groceries – and more specifically we’ll talk about WalMart, which is the largest seller of groceries in the US by market-share…
Over the past 5 years, WalMart has had to increase wages and benefits to keep their stores running… Labor is one of their largest expenses (and it has increased above the overall rate of inflation)…
For the price of groceries to go down, Walmart would have to tell their workers ‘Oh, never-mind… We’re going back to 2019 pay and benefits, and if you don’t like it you can quit’… You can imagine how that would go off…
What you are talking about is deflation. It caused the Great Depression.
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