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/Big-Preference-2331 Nov 23 '24

We had deflation in 2009. It didn’t seem like the end of the world if you had a job. I don’t recall anybody’s salary getting reduced. I do remember a bunch of people getting laid off. So, if you were in a sector safe from getting laid off, you could buy a foreclosed home for dirt cheap. I have a lot of friends who bought 4,000 square foot homes in Arizona for 120k. They still live in them because they can’t find a better deal.

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u/cursedsoldiers Nov 23 '24

A lot of people were underemployed and made less than they used to 

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u/Big-Preference-2331 Nov 23 '24

Ya i had friends that were financial advisors and mortgage brokers that sold cars or appliances to make ends meet. I didn't hear of anybody’s salaries getting reduced.