Deflation

WHAT IS DEFLATION???  Analyzation: Shows how dollars are deflating through the deflating of a dollar sign.  Deflation occurs when inflation rates fall. Deflation is the decreases price level of goods and services in general. For example, a lot of shoppers wanted to buy dresses from a store but found it too expensive. So the group of shop members decided to wait until the dresses go on sale. The shop owner will have no business and will put those dresses on sale. However, since the prices are so low, the shop owner is going to lose more money making dresses, so the shop owner waits until the fabric materials go on sale. The fabric owner is going to have no business and will give the shop owner a discount. Since the fabric owner is giving fabric out so cheap, he wanted to fire a few people so he can save some money. This causes more and more people to get unemployed. Watch the video to see this visually and clarify.

media type="youtube" key="C4wHVkuuy78" height="340" width="560"  Shows and explains a real scenario that could happen for deflation. Explains everything that was written above visually.

So basically, prices go lower and people lose jobs. Deflation causes the amount of money worth more unlike inflation. For example, Euros. Europe went through a lot of deflation because a single U.S. dollar is 0.7213 of a single Euro. Right now, the process of inflation is more popular than deflation and also the countries that go to the inflating countries benefit more too. People would rather have less and receive more than have a lot and receive less right?

 Analyzation: Shows the key point of deflation; everything goes down.