this post was submitted on 03 Dec 2025
486 points (98.8% liked)
Political Memes
1986 readers
771 users here now
Non political memes: !memes@sopuli.xyz
founded 3 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Static lower prices might, but deflation does not. If prices will be lower tomorrow or next week, it's wiser to hold on to your money and buy later.
Sounds good in theory, but I don’t think that holds up in practice. For example, computers getting more affordable and powerful year by year didn’t stop people from buying them.
If the price is lower than the opportunity cost of NOT having it, people will buy it now, even if the product will be priced better next year.
And a large part of the price increases people are struggling with are food and housing. It's not like you can wait till next year to eat or have a place to live.
Eat? No waiting. Live? Sure! If prices were consistently falling because of deflation, and you knew renting for a year would allow you to buy a larger house with the exact same amount of money you hand in your hand, most would do that and rent for a bit.
For buying a house, isn’t it kinda like the stock market (except way less liquid). Yeah, the prices may go down in a year but someone may swoop in and buy while you’re sitting on the sidelines trying to time the bottom.
A specific house may be bought up, but others will be available that are similar for substantially less in a deflationary market.
Which would put inflationary pressure on rental prices which in turn would put inflationary pressure on property prices, and we are back to square one.