Deflation is good for the economics only when
1) The market size is large enogh, otherwise , no matter how cheap
the product is, no body will buy.
2) The deflation is good for the economics only when the deflation
is caused as a result of productivity increased, instead of laying
off people or salary reduction, because the employee are also
consumers.
3) Deflation is good for the importing countries only when the
the deflation is caused by currency effect, but not good for
the exporters where the exporters needs to export more goods
to gain the same amount of dollar reserve.
The market is driven by applications, The PC's market is driven
by MICROSOFT to release more applications.Each time when new
applications were released while the old models can
not handle the programs, it open up a new market for the new
PCs,example: 386 to 486 vs dos to window, 486 to 586 vs window to
win95 ....etc.
The TV is different than PCs, for years TV just receive signals
and display the motion pictures, but for PCs lots of new applications are on the way. |
