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A comment on The rich world needs higher real wage growth. Parent comment

Re:The rich world needs higher real wage growth by mozumder on Sunday July 01, 2018 @11:54AM (#17436059)
It only really causes a problem if you don't prepare your economy for it. Prices should really only drop for commodity products and basics, so that one can live for $100/month. You should still offer incentives for people to spend more, such as offering higher end real-estate and products, or just bringing in more people into your economy.
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Re:The rich world needs higher real wage growth by walshemj on Sunday July 01, 2018 @12:38PM (#17436269)
I causes people to delay spending and horde rare goods (gold etc) it also has massive problems if say 90% of your populations mortgages are underwater see Japan
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Re:The rich world needs higher real wage growth by xapata on Sunday July 01, 2018 @12:03PM (#17436105)
What mechanism causes this deflation for commodities and basics? How much of the economy is basics?
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Re:The rich world needs higher real wage growth by mozumder on Sunday July 01, 2018 @12:13PM (#17436157)
Efficiency and automation reduces commodity prices.

Just transporting food is a huge cost. Get transport costs down and you reduce food costs.

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