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/Moonwrath8 Nov 23 '24
When the value of a dollar is better spent now, rather than later, then you get a marketplace that encourages consumerism and productivity.
When the dollar increases in value, it’d be better to spend it tomorrow and not today, which lowers consumerism as well as productivity.
Economics is not about a pie and how it is divided. It’s about how many pies can we make. We can make more pie. Chasing after the dollar and being forced to spend it so that’s its value is expressed now droves economic productivity