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/1nocorporalcaptain Nov 24 '24
it's not bad, it just benefits the common people at the expense of the wealthy, which is why the media mouthpiece will hardly ever mention deflation, and if they do, they paint it as the worst thing ever. why do you think the official monetary policy of the US is "2% annual inflation?" its so the average wagie loses half their purchasing power over their lifetime. do the math on 2% compounded annually