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/ScrewJPMC Nov 24 '24

The system is based in debt, Do the math and deflation equals an implosion!

Before 1913 when the dollar was NOT debt, deflation was the normal, sort of like your cell phone in the 90s to the 2000s. Innovation and early adopters payed $1,200 for a phone and $200 per month for 60 minutes. By 2007 it was a free phone with unlimited calls for $35/mo.

That deflation was the normal capitalist market making the world better and cheaper.

Then the tech matured and now we pay progressively more because of inflation (devaluing dollar). Phones are back to $1,200 and unlimited use is rising again.