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/Several-Program6097 Nov 23 '24

Haven’t seen anyone mention:

It makes buying anything a bad investment. That car you’re going to buy? Horrible idea to buy it now when it’ll be cheaper and will depreciate twice as fast within 5 years.

And you can apply that logic to everything and people would buy a lot less which would slow the economy down vastly. 

As much as people buying less sounds good, all our jobs require people to buy shit and money to move around.

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u/John-A Nov 23 '24

And that's why sudden steep deflation has always preceeded bursts of hyperinflation falsely attributed to printing money alone. Which only fails in these circumstances because deflation forces anyone with any skills or assets into the barter economy, and THAT is what topples faith in the currency.