You're right, and the breathless reporting of increasing housing prices, as if it were a good thing, is just embarrassingly bad economics.
I've heard people talk about the threat of falling prices to an economy at large, as if, as you mentioned, cell phone and computer companies had done badly in the past 25 years because of falling prices. As if people delayed the purchase of electronics because they were rapidly improving. As if people wouldn't buy a car if the price might fall by 1.1% year over year.
People point to Japan as if falling prices were the source of their woes, not demographics and cronyism.
Deflation doesn't cause economic growth, but efficient production causes deflation.
Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.
Also author of Stick it to the Man!
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