I wrote a longer reply, but the problem is you&#x27;re looking at this from the side of consumers consuming things they want. I don&#x27;t give a shit about the resale value of my Macbook Pro, and in 2015 if you&#x27;re buying a new car you&#x27;re well aware that you&#x27;re throwing away the first third of its value in 5 years. Deflation is not a concern when we&#x27;re talking about people buying things for the joy of owning them.<p>What we&#x27;re talking about is investors buying things (like capital equipment) for the purpose of making money. But even for an individual - would you go $200k into debt for a house that&#x27;s going to be worth $50k in 10 years? Of course not! A rational actor would even shy away from leases - you want to jump to something cheaper (or better for the same price) as frequently as possible, to minimize the amount of time that you&#x27;re paying above market value for housing. Just like how you want to move between tech jobs relatively frequently to minimize the amount of time you&#x27;re being paid below market value.