Posts: 96 +155
Well, less consumption makes prices go down until everything stabilizes. Governments should employ more and adjust taxes so people have more money to buy also.
If most people just get depleted buying non-essential things with inflated prices, they are doing harm both ways:
A) if the product X costs 250€ in 2015, then the normal way would be that the successor Y in 2020 has a higher speed at lower price OR max. around 280€ (250 + some price adjustment due to higher payments, etc. It may even be that the price goes down if they can save costs producing it). It means, you should get a gtx1070 for about the same price as a gtx970, not much higher; what happens since the pandemic + mining + "inflation": companies get the signal that they still sell extremely well overpriced (= that will be the new price and standard
B) the "inflation", pandemic, bla bla bla... well be excuses to dismiss people and even so higher profits with less production. It will be just a win situation for those companies
C) if you buy overpriced things, wages will just increase 5% of that increase. Which means what you earn won't last long. People will get poorer. In my country was made a study with the conclusion that 50 years ago people could save 2/3 (66%) of what they earned, they had a good buying power; in the last 50 years prices increased brutally but not the wages; ATM people can save around 20-25% maximum and that on the middle class. The ones that earn less almost have to spend 100% what they earn.
Totally agree, I'm struggling to save around 20% these days. But people like me, we are not the targeted customers.