BUT is that what the government has been doing? NO, they're busy trying to "stimulate" the economy with stimulus-packages & low interest-rates & trying to prop up the prices & create inflation so why would prices fall?
It was a general statement by "knighted" about "what would happen if government just let the economy be on its own!" & my reply was in that context.
If you have a big stock of goods with you & nobody wants to buy it, what does that mean? If you wish to sell them immediately then you must lower the prices to competitive levels.
But again, minimum wage laws & welfare doesn't help the process at all, instead by stealing & transferring capital from the productive people to the unproductive, the economy is squeezed even more; & as I've said before, there's always "regulation" & "regulatory costs" to deal with
EXACTLY! It's that simple if one actually understands how the markets work.
But instead a lot of people will ponder over statistics, graphs & all kinds of useless mathematical models & overcomplicate things unnecessarily.
On the other hand, if one understands how the markets work then it's not that hard to realize the "solutions".
But unfortunately, most people simply don't understand the markets - because they are incapable or misguided or just intellectually lazy.