Why Falling Prices Are A Good Thing

Falling prices are a reward for capitalism. They make wages more valuable, they make savings more valuable. Well, the argument is, if prices are falling, nobody is going to buy anything, they will just be waiting for lower prices. Of course, that is absurd. We all have cellphones, we all have laptop computers, we all have plasma TVs. The prices for those items are falling all the time. That does not stop people from buying them. In fact it encourages people to buy them.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.