I always thought I had a reasonable grasp of economics.
I understood the basic principles –
- Shops want more money so they put prices up
- Workers want more money to pay the shopkeepers so they look for a pay rise
- Workers go on strike
- All hell breaks loose until eventually workers get half what they asked for.
- And so on.
That is called inflation?
Deflation is where everything goes backwards.
- Shops can’t sell things so they drop prices
- Workers take pay cuts or lose their jobs.
- No one buys anything because it will be half the price next week
So my understanding is that with inflation, everything goes up?
Deflation is where everything goes down?
I was doing a drop of on-line shopping last night and decided to use Tescos.
I found this –
Now I am really fucking confused.