Deflation is a state in the economic cycle when prices fall through the roof. The problem with deflation is that it messes up everything. Employers get the temptation to forgo your raises. That sounds like a farce statement? Not really, when you consider prices are going down. Therefore deflation is an economic state, where employers are making less money on the products they sell. They cannot charge as much for their products.

As a consumer, an interesting phenomena can take place during periods of deflation. It is called reverse greed. People start to believe prices will continue to fall, so they do nothing. They do not buy or they will wait to the last minute, hoping for a sale. Unleaded gas may see spikes of sales on Thursday because they expect to find a lower price on this day.

Deflation has not reared its ugly head in our economy in recent years. None of us really want our paycheck to stay the same for two or three years. Please Greenspan keep deflation away from us.

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