Hamburgers and beef bowls have fallen, and supermarkets sell jeans less than 1000 yen, and things are cheaper, and it sounds like a good thing for us consumers.However, the news of TV and newspapers says that it is difficult to become a deflatory pyral.So what is hard?
"Deflation" is an abbreviation of the word "deflation", and in short, it refers to a state where prices continue to fall.This is a phenomenon seen during the recession.Conversely, the state in which prices continue to rise is called "inflation", which stands for "inflation"."Deflested pyral", which has become a hot topic now, is a deflationary vicious cycle.It refers to a situation where prices have fallen, and demand has not been seen, the economy has deteriorated repeatedly, and it has fallen into a vicious cycle in which deflation has progressed further.
Don't you think it's a good thing that the price goes down and the price of things is cheaper?Being cheap is a nice thing for us consumers to live.It is also true that some companies are ensuring that customers and profits are increasing by lowering the price.
Let's take a concrete differente -ferroma as an example of a clothing store.No matter how much you advertise, if the product does not sell, the price will be reduced.If it still doesn't sell, it will lower the price to the last minute.Even if it sells in such a state, this clothing store will not make a profit.This is deflation if such a thing happens not only in this store but also in any store.
In a store that does not make a profit, the salaries of employees must be reduced.If you can't secure profits even if your salary is reduced, you will be fired.When salaries fall or are fired, your income will decrease significantly, and you will start a stingy life that cannot be easily bought.If you do so, you will fall into a vicious cycle that things will not sell more and more.This is the deflatory pyral.
If a company deteriorates, the company will lose its capital investment and R & D expenses, reducing competitiveness.This will lead to overseas companies.In such a company, profits get worse and become deficit.In the deficit company, employees will be restricted, and the company will not be able to pay taxes themselves.If both companies and employees have reduced profits and income and cannot pay taxes, tax revenues for national and local governments will decrease.Then, administrative services that are directly linked to people's lives will decrease.
The fear of deflationary pirals is that if the interests of companies and the income of the people decrease, the life will not only affect your life, but you will lose the vitality of the nation.We consumers need to acquire the wisdom of not only seeking products and services with low prices, but also gaining the right knowledge and information about quality and buying products.There is.Nowadays in such an era, why not review your money, from daily shopping to investment and insurance?
(Yu Miyake)
* This article is an article published on March 1, 2010.Therefore, the content of the article is on the date of the publication, and the content of the information may be different from the present, so please understand the following points when viewing and using this article.