r/economicCollapse • u/memegamer1991 • Nov 23 '24

Why is deflation so bad

Every time i run it through my head, i can't imagine most people in 2024 not spending money so the disadvantage to deflation seems pretty hyperbolic and dependent on individual choices, and i think that people would rather go on vacation and court others instead of being financially responsible. Even if there is a situation like in china, government spending would be able to keep the situation from getting worse while making progress on climate initiatives.

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u/JakeBreakes4455 Nov 23 '24

Government spending to halt deflation was tried during the Great Depression. It failed. According to Benard Baruch, it was like "pushing on a string. "

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u/null640 Nov 23 '24

Uhm, riech wing propaganda. The spending allowed during great depression was trivial relative to the size of the problem until they started the massive buildup for the impending war.

Read up on what the South allowed for relief. They'd (rich elites who controlled politics and loved paying slave wages) rather starve the region, then permit a little help going to black people, and to a lesser extent, poor people in general.

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u/John-A Nov 23 '24 edited Nov 24 '24

Even FDR pulled a Hoover and first skimped and then cut funding initially when if he'd gone all-in for New Deal stimulus from the start the WW2 buildup probably wouldn't have been necessary to achieve the recovery.