Finding Good in Falling Prices

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FindingGood in Falling Prices

FindingGood in Falling Prices

Veryfew Americans are familiar of when the prices were falling in theeconomy. Various comedies have been falling concerning prices. Forexample, vegetables and clothing prices have been falling in pricing.This drop is according to the inflation report of 2010. Although thedrop in prices has raised new concerns such as appending deflationaryspiral, many consumers are very happy with the falling prices. Manyconsumers will also reduce the spending on various items. Theconsumers will reduce their spending because they anticipate theprices to fall further. Therefore, they will opt to purchase theproducts at a later date. The fear of deflation, therefore, looms dueto the change of attitude by the consumers. As the prices arefalling, the cost of living reduces and the jobs available reduce.

Thefalling prices will, therefore, be an advantage to millions ofpeople. Most business are not able to cut on their workers` salariesdue to falling prices. Therefore, people will have extra money tospend and to save. Companies cannot reduce the salaries of theirworkers. They, therefore, will reduce the positions of availablejobs. The job opportunities in the economy will, therefore, reduce asa way of regulation by the companies. Reducing prices will make thecost of living easier people will be able to afford most products.This article is relevant since it explains to the readers the effectsof the falling prices. The article also explains to the reader’sways in which they can tackle the falling prices opportunities. Thearticle clearly explains to the reader’s ways in which to savemoney.

Reference

Boskin,M., &amp Boskin, M. (2010). 2. Better Living through Improved PriceIndexes. BetterLiving through Economics.

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