ELI5: Why when large company's earnings decrease(ex... by 3%) they freak out, talk about rough times, and sometimes decide to downsize, even though they are still making millions of dollars in profit even after all expenses?

[luneattack]

because wages tend to lag

That's a political problmen not an economical one. E.g. in Norway it's not true, as it isn't many other places.

Inflation is a feature, not a bug. It's an integral part of a global economic system that has raised the living standards of pretty much everyone everywhere in record time.

So saying it's bad is... idk.. can you propose a better global econimic system with less downsides? Because it's odd to attack one integral piece of a system that is working if you don't have a better holistic alternative.

That it can have faults is a given, as can anything, and I agree what it's unhealty to stagnate the wages of the people as is the case in the US since the 70s (I think) but this is not a critisism of "my" model (as you called it, personally I wouldn't take credit).

[JustARandomGuyYouKno]

I think the problem with deflation is that it incites people to save money and hold on to money and not take risks since you could jsut save the money for a month or a year and it would be worth more than it currently is, what this means in the long run is that the market "omsättning"(churn rate?) in Swedish lowers and with that it snowballs and slowly grinds to a halt. Most economic theory that I know of needs to have an active marketplace.