Ron Paul and the Dollar.

[hmkpoker]

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I am guessing the reason things would get cheaper every year is due to more efficiency and competition? If there is no upwards artificial inflationary pressure (printing money), that would make sense. An interesting perspective that had never occurred to me. Hopefully someone with more background than I have can confirm, deny or further explain the forces at work as described in this post.

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Sounds like you have it. Things get cheaper because people get better at producing them. A few goods, maybe oil, might get more expensive because oil gets more expensive to produce, not cheaper, but generally things should go down in price as workers get more productive.

Of course, at least in a perfectly rational economic world, wages would also go down, so most people wouldn't see much effect on their purchasing power.

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Why would wage prices fall as fast as the prices of consumer goods?