The entire edifice of Free Market Economics as a Political ideology is exactly that use of recognized and measured effects to justify self-serving measures in different areas were none of that applies.

Just like the observed effects of people delaying the purchasing of big ticket items, luxuries and things which are not immediate needs when prices are going down does not apply to basic needs, so do the quality improvements and price falls in markets with no barriers to entry which are naturally competitive (say teddy bears or soap) do not apply is the majority of markets out there (including some for basic needs such as housing).

Yet the Political Propaganda anchored in Economics is invariably done by using truthful things outside the context were they apply - i.e. lying using what elsewhere would be true. It's like somebody justifying reducing the maximum speed in a stretch of road by using the Theory Of Relativity to claim that the time dilation at higher speeds would cause all sorts of problems with clocks and aging - true near the speed of light, not true at 50 Mph.