Meflation

[tremendoustie]

I can't claim this as an orginial idea, it was mentioned on FTL, casually.

But, I think it deserves more thought. The idea is that the goods and services individuals try to sell get cheaper, but new manufacturing goods and consumables get more expensive.

Consider what would happen with high unemployment, and no new loans being made to the U.S. No more cheap crap from China (and elsewhere), and our industry will not be even close to being able to pick up the slack -- so these manufactured goods, including food, get more expensive. But, people are also out of work and needing money, so anything they can sell gets cheaper -- houses, used cars, old stereos, tvs, etc.

Thoughts?

[tmosley]

If locally made goods start getting cheaper, it's probably because of innovation in the way they make things, generally mass production, which is industry. Basically what you are describing is the emergence of a new industrial base even as the old one collapses.

[hugolp]

If locally made goods start getting cheaper, it's probably because of innovation in the way they make things, generally mass production, which is industry. Basically what you are describing is the emergence of a new industrial base even as the old one collapses.

Yes, but the problem comes when the new industrial base is emerging in a different place where the old industrial base is dying. Sound familiar?

Hugo

[torchbearer]

Sociologically speaking... this is a transition period.
We are production poor... thus we will be force to produce.
This happens when we become too poor to import.

Current Corps need to go bankrupt and a new economy with new companies and more local companies needs to emerge.
And when I say companies, I mean places the produce essentials.

Then we will eventually get to a point where we can produce stuff for export again... and start to regain our wealth.

Probably won't happen in our lifetime with collectivist in charge.

[tremendoustie]

If locally made goods start getting cheaper, it's probably because of innovation in the way they make things, generally mass production, which is industry. Basically what you are describing is the emergence of a new industrial base even as the old one collapses.

Well, initially, I'm not talking about a new industry. I'm just talking about hungry people selling all their old stuff they bought on credit. E.G. the 50 inch flatscreen goes when you're trying to stay in your house.

In a free market, I do agree that local industry will eventually begin to emerge. Then, we really would be on the road to recovery.

[tmosley]

Well, initially, I'm not talking about a new industry. I'm just talking about hungry people selling all their old stuff they bought on credit. E.G. the 50 inch flatscreen goes when you're trying to stay in your house.

In a free market, I do agree that local industry will eventually begin to emerge. Then, we really would be on the road to recovery.

Oh, I see. I thought you were talking about things people were making, not used stuff.

[nayjevin]

see this already -- used cars are cheap cheap

[SevenEyedJeff]

I thought your idea of "Meflation" might mean something like:

Each person pays for goods and services based on their own personal appetite. If you live very lean, everything is cheap. If buy a lot, then the more you buy, the more expensive things get for you. Your own "personal" inflation based on your amount of consumption. :p

[moostraks]

Then we will eventually get to a point where we can produce stuff for export again... and start to regain our wealth.

Probably won't happen in our lifetime with collectivist in charge.

I think you are probably right on this and I find it incredibly depressing. Life sux and then you die. Happy happy joy joy.Ergh!

[moostraks]

see this already -- used cars are cheap cheap

Yep. It is ebay retaliation. Another way to stifle self-sufficiency. Prices on ebay are going down in large measure for used items, as everyone is off loading their junk to survive the job layoff or what have you in their lives.