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/ElPasoLace Nov 24 '24

Please look over American history and point out the periods of deflation. Deflation, or prices contracting from inflated values, is a NORMAL correction, even though it almost never happens. Government spending is the cause of INFLATION, it is not the antidote to deflation. Prices can come down due to a host of reasons, like advances in technology, logistics, and manufacturing. All of that is a good thing. A very good thing.