A lower population amounts to less demand for products and services, which will depress prices. Sure, you've got more money out there, per person, but less people buying shit. This happens when there is a recession, prices drop to reflect demand. Think of home prices after the bubble burst in 2008. There was a shit ton of supply built up from the boom too, but not enough demand.
I believe OP is wrong, though, about deflation being inevitable. In the 1970s you had inflation and stagnant economy, and Japan has a declining population but lots of inflation. Moreover, America keeps bringing in more immigrants, legal and illegal. Plus the printing press is still running hot. The result of this, is continued inflation.
Most goods are durable, meaning the can stay in inventory for quite some time. Houses, playground sets, grills, cars, etc. It takes a longer time for supply to dwindle to meet demand, meanwhile producers are hosed right away as sellers stop buying. Right now, major places like Target are paying for storage from the glut of inventory. There are articles on this at Zerohedge if you take the time to look.
Non-durable goods, such as peanut butter or bread have a quicker response from the supply chain for less demand.
IMO that is completely backwards.
Having fewer people divides out more currency per person.
A lower population amounts to less demand for products and services, which will depress prices. Sure, you've got more money out there, per person, but less people buying shit. This happens when there is a recession, prices drop to reflect demand. Think of home prices after the bubble burst in 2008. There was a shit ton of supply built up from the boom too, but not enough demand.
I believe OP is wrong, though, about deflation being inevitable. In the 1970s you had inflation and stagnant economy, and Japan has a declining population but lots of inflation. Moreover, America keeps bringing in more immigrants, legal and illegal. Plus the printing press is still running hot. The result of this, is continued inflation.
A lower population amounts to less supply for products and services, which will increase prices.
Most goods are durable, meaning the can stay in inventory for quite some time. Houses, playground sets, grills, cars, etc. It takes a longer time for supply to dwindle to meet demand, meanwhile producers are hosed right away as sellers stop buying. Right now, major places like Target are paying for storage from the glut of inventory. There are articles on this at Zerohedge if you take the time to look.
Non-durable goods, such as peanut butter or bread have a quicker response from the supply chain for less demand.
So, I'll trade you this house for a peanut butter sandwich.