The best choice to stop deflation would be either lowing the amount of money you can earn, or increasing the amount of ways you can spend it. Higher lotto tax, ect.

 

Lowering what you can earn doesn't stop deflation. In this case that is what is causing the deflation. Rather you want to make good and expensive ways to spend the money.

One product isn't going to affect deflation. One product dropping in price can make that product less desirable, but in the case of nstars they added things to do with them at the same time. That drives up demand, and will keep the price high for at least the near future.

 

But that doesn't make sense. Getting rid of money is the same as having less money to spend in the first place, right?

 

Lowering earnings is not the same as removing money, and neither is the same as the money never being in circulation.

Lowering earnings causes many people to start hoarding money, in case they need it later, or because they feel they can get more for that same amount later. This hoarding keeps prices of goods dropping, causing further deflation.

Removing money, can be done in many ways. If it's just a, "We are taxing you 15% of your balance," that contributes to people wanting to spend the money, so they lose less. If you give people a use it or lose it ultimatum, most will use it. If it's through providing items that people want, they are still spending. Both of these can cause inflation, despite there being less money than at the start.

Keeping the money from ever being in circulation means that people don't have the money to hoard, and they didn't have the money to spend before. This means that it doesn't cause inflation or deflation, as the value of cash doesn't have to change at all.

Balancing all of these is very, very difficult. That is why teams of economists can't get a balance where money does exactly what they want. Instead they use guidelines to push it, and hope it goes. They aim for inflation, as in the real world governments normally make money on each transaction. Recessions show what happens when it doesn't quite go as planned, and balance (or even deflation) starts to set in.

 

This is not the worst drop there has been, when i was a resident a while back when pumpkins were 2 each they dropped by 0.50

 

It was indeed

 

Really, what about

 

Ye I suppose that could be counted as worse but they were raised massively to start with from like 2.50 to 100 then back to i believe now 25. plus fishing isnt as big of an industry as farming and such.