My question is this: doesn't world deflation put pressure on US companies to lower prices too to compete with cheap foreign imports? But if so, won't they quickly (or slowly, it doesn't matter) run out of operating capital. Then they have to begin collecting on all that consumer debt that has some people worried. If they call in the debt, how many personal and business bankruptcies are we going tosee? Or is this whole idea of deflation hitting american shores missing something?
chuck miller
Louis Proyect wrote:
The business press makes it clear why this won't work. There is enormous
> overcapacity everywhere. Capitalism does not have any notion of what to do
> when it builds excess capacity except to lay off workers at best, or go to
> war at worst. We must fight against either eventuality.
>
> Louis Proyect
> (http://www.panix.com/~lnp3/marxism.html)
-- http://www.users.uswest.net/~bautiste/index.htm