Thread: Deflation
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Old 12-06-2008, 03:36 PM
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Cubdriver
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Joined APC: May 2006
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It's funny thinking about money as a commodity but it is. When there is a shortage of it you have deflation, and when there is too much you have inflation. I will always remember the rampant inflation of the late 70's and early eighties. It tends to scare the heck out of people because they think their wages will be worthless in only a few months if the pace continues. My father was a college professor in the late 70's, and he was very, very worried about his salary becoming worthless due to inflation.

Deflation is the opposite, not enough money available. It means those who are still in business can buy more, great, but it means a lot of people are losing work because their companies are going out of business.
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