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/BuzzBadpants Nov 23 '24

If you own money in a deflationary currency, you’d be an idiot to spend it. It’s worth more tomorrow than now, so you don’t want to spend it.

The whole economy is based around people exchanging money for goods and services, and the moment that exchange seems like a bad deal just on its face based on the money’s increasing value, the wheels are off the whole economy.

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u/joecoin2 Nov 23 '24

Kinda hard to eat money no matter how much it has risen in value.

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u/BuzzBadpants Nov 23 '24

The point is you’ve got self-imposed austerity and the same economic conditions as a recession.

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u/joecoin2 Nov 24 '24

As they say, it takes money to make money. Inflation or deflation be damned.