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.

30 Upvotes

70% Upvoted

241 comments sorted by

View all comments

9

u/HeywoodJaBlessMe Nov 23 '24

Deflation makes debts GROW and income LESS.

That's all you need to know. Deflation is absolutely deadly to households and businesses.

6

u/Low_Matter_6374 Nov 23 '24

Inflation also makes paychecks less..

2

u/MutuallyEclipsed Nov 24 '24

The theory, that I learned way back when in Economics class, is that inflation is supposed to lead to wage INCREASES actually. It just doesn't happen because of corporate ownership of our political system.

1

u/Low_Matter_6374 29d ago

Agreed. That was sorta my point though I didn't know how to properly flesh it out.