1. “When shoppers see persistent price declines, they hold out on buying things. They ask, will I get a better deal next week, next month, next year? As a result, consumer spending flails. For most nations, that’s a big chunk of their economy, and any slowdown in consumption threatens growth.”
Actually that's only true for something that's purchased with price sensitivity or where demand is sufficiently elastic.
People don't hold out on lots of things as the price falls, they buy when they run out on consumables and price isn't always a driver for a purchase.
Cell phones get better and better and are generally getting cheaper, yet very few people really wait for the price to drop. What waiting they do is based on contract expirations or the expectation of the next hotness.
Even with waiting for the price to drop...
If the demand is inelastic, a lower price means MORE purchasing not less.
The only commonplace item where he's right is gasoline. People top up a lot more when prices are climbing, making more but smaller purchases; and they wait for the tank to be dry before filling when prices are falling, making fewer but larger purchases. However, they purchase just as much gas regardless.