In economic terms what you're describing is called deflation.
During deflation prices keep falling, which causes consumers to post-pone their purchases (tomorrow they'll be able to get that TV at a lower price so there's no point in buying it today) and investors sit on the money since they'll be more valuable tomorrow.
This is the exact opposite of inflation, which causes people to convert 'today' money into goods since tomorrow they'll buy less with it; it also causes investors to put money to good use or in interest-bearing accounts since otherwise they lose the value).
If deflation is so dangerous I wonder why anyone buys consumer electronics which, despite currency inflation, continue to decline in price due to advances in technology. If we experienced the full effect of deflation, today's iPad would cost a much tinier percentage of yesterday's Apple II. Would that have stopped people from buying either? I doubt it.
If we experienced the full effect of deflation, then average wages would be falling, as well as the average prices for everything (not just for consumer electronics, which make up a very small percentage of the average person’s expenditures). This would be particularly bad news for any person or business that carried, or expected to carry, debt. You wouldn’t want to take out a mortgage on a house (or have your company borrow money to build a factory) if you expected that the nominal resale value of the house would go down and your nominal income would go down while your nominal monthly payments would stay fixed.
Consumer electronics are unique right now in becoming orders of magnitude more capable before the old versions even begin failing. New products sell because nothing comparable was even available before and it's inconceivable that next year's version could be better somehow (even though it will). No other category has this going for it.
During deflation prices keep falling, which causes consumers to post-pone their purchases (tomorrow they'll be able to get that TV at a lower price so there's no point in buying it today) and investors sit on the money since they'll be more valuable tomorrow.
This is the exact opposite of inflation, which causes people to convert 'today' money into goods since tomorrow they'll buy less with it; it also causes investors to put money to good use or in interest-bearing accounts since otherwise they lose the value).
Therefore some economists argue that deflation might be even more dangerous than inflation because it discourages consumption and tends to have down-spiralling effects. (see http://krugman.blogs.nytimes.com/2010/08/02/why-is-deflation... ).