What is the difference between economic deflation and a depression and where is the United States Economy going? Professor Richard Wolff joins Thom Hartmann to discuss the difference between deflation and a depression.
A deflation is the opposite of an inflation. There is a general decline in prices, usually together with wages and salaries also going down.
There is no necessity that a depression goes together with a deflation. It can happen together if people in town don't have enough money to go to the store, and so the storekeepers become desperate that they're never going to move stuff off the shelf, so, to keep business going, they begin to drop prices. Then, you have this back and forth between falling prices and falling wages, kind of causing each other.
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The U.S. will see unemployment bigger than 25% by June. Restaurants, sports, travel, entertainment, etc. will never be the same for a long time UNTIL we reach “herd immunity” or until we get mass saturation of the COVID-19 virus — just as we have with the flu virus.
Given that, prices will decline to the point of fire sales. Even the healthcare industry is near bankruptcy, as hospitals are laying off hundreds of thousands of nurses, doctors, and staff, because people don’t want elective surgeries and wish to avoid going to the doctor’s office.
We never recovered from Bush’s 2007/2008 economic disaster, given that 10% of mortgages in the U.S. are STILL underwater.
Trump’s Great Depression will be really bad — which is why he will never see the light of day. His presidency will end with the hundreds of thousands of Americans who will die by the election, as well as the failing economy that was already failing for nearly all Americans.
Trump just artificially pumped up the stock market to spur higher stock prices, so that his big money corporate donors would win. But America lost. And he will pay for it with his presidency, as will America.