Professor George Selgin makes the
argument that falling prices reflect improvements in productivity and are economically beneficial
..Nobody predicts Armageddon when, say, the price of computers declines year after year. Everyone understands that the drop in prices has nothing to do with a shortage of consumer demand but is rather due to productivity improvements in the computer industry.
Yet when similar improvements start happening all around, and so affect the general price level, doomsayers start squawking. It is as if they just can't conceive of the possibility of general improvements in efficiency making most people better off, with the gains being transmitted via lower prices.
.. I suggest that the rest of us ignore the squawking and go shopping.
