Key Points
- As shoppers await price cuts, retailers like Home Depot say their prices have stabilized and some national consumer brands have paused price increases or announced more modest ones.
- Yet some industry watchers predict deflation for food at home later this year.
- Falling prices could bring new challenges for retailers, such as pressure to drive more volume or look for ways to cover fixed costs, such as higher employee wages.
We only got out of the great depression because of world war 2. Any policy pales in comparison. It was a huge government spending program that employed many. It also meant a lot of working age men died, shrinking the labor pool, thus putting upward pressure on wages. The generous social programs helped, as did the fact that US infrastructure wasn’t destroyed like it was in Europe.