There are a number of reasons but the obvious one is that deflationary conditions disincentivize economic investment.
Why should anybody start a business or invest in one when their money gains value ...
I guess the whole concept of investment got distorted in the fiat system: we are led to believe that investing is applying capital with the goal of making more money than we put in, no matter what. But investing is applying capital with the goal to solve a problem or at least reduce the pain of a problem, essentially to make our lives better, easier, etc. So, if we do that, the market will naturally reward us with money in exchange for our solution
Why should anybody start a business or invest? Because we always gonna have problems to be solved, no matter if we are in a inflationary or deflationary system. Some ppl will have pressing problems that might incentivize them to look for solutions(start a business or invest in others). Sure they might prefer to keep their wealth because "tomorrow it buys more" but maybe the problem they are facing is more urgent than gaining purchasing power. It's a decision that involves business risk, delayed gratification, risk tolerance, etc.
The issue with the inflationary system is that it slowly steals our time from us (having to work more time to earn more money bc the money constantly loses value) and because of that, it Forces us to put our wealth on something that will beat inflation and give our time back. Yes this will develop the economy but at the cost of making us slaves of money with less and less time for anything else.
The deflationary system does not steal our time. It gives us more time to do more productive stuff or do nothing (a choice). The economy will also develop because ppl will continue to have problems, desires, necessities and there will always have other ppl willing to solve those problems or satisfy those desires and necessities.
Why should anybody start a business or invest? Because we always gonna have problems to be solved, no matter if we are in a inflationary or deflationary system. Some ppl will have pressing problems that might incentivize them to look for solutions(start a business or invest in others). Sure they might prefer to keep their wealth because "tomorrow it buys more" but maybe the problem they are facing is more urgent than gaining purchasing power. It's a decision that involves business risk, delayed gratification, risk tolerance, etc.
The issue with the inflationary system is that it slowly steals our time from us (having to work more time to earn more money bc the money constantly loses value) and because of that, it Forces us to put our wealth on something that will beat inflation and give our time back. Yes this will develop the economy but at the cost of making us slaves of money with less and less time for anything else.
The deflationary system does not steal our time. It gives us more time to do more productive stuff or do nothing (a choice). The economy will also develop because ppl will continue to have problems, desires, necessities and there will always have other ppl willing to solve those problems or satisfy those desires and necessities.
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