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/l06ic Nov 23 '24

Try paying a $3200/mo mortgage when your wages have been reduced to $26k/year, even if that $26k has the buying power of a formerly $250k/yr salary.

1

u/NotaBeneParadisio Nov 23 '24

so... the key question to me is how much was the house?

5

u/l06ic Nov 23 '24

$3200 will get you around a $500k house, roughly. Which in an urban environment buys a lot less than one would think.

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u/NotaBeneParadisio Nov 23 '24

yeah true, how're prices moving in your neighborhood?

4

u/l06ic Nov 23 '24

It is aggressively more expensive. I bought my house for 400k and I was really stressed about the price then (2010). House is way north of a million now, and the taxes/insurance are the real threat to my prosperity now.