The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Elroy Jetson who wrote (7192)	12/7/2002 11:47:37 PM
From: Lizzie Tudor	Read Replies (2) of 306849

where's food on that list? I'm an economics neophyte but I am wondering something. In Japan wasn't deflation primarily a problem of lack of demand? In the US, I would say deflationary pressures stem from business efficiencies, many of which came about along with the internet and other technologies. Outsourced labor (third world countries) for customer service, and now engineering are a big deflationary force in wages. B2B purchasing is deflationary, stuff like that. Does it matter if deflation is efficiency driven instead of demand-driven? After all we've had efficiency driven deflation in technology since the beginning and in the end, I believe lowering costs actually drives demand. Anyway I agree with other posters here that enough things are going up in price to offset any deflationary pressure... I was just wondering if the source of deflation mattered. Lizzie

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