Usual argument why inflation is necessary:
In case of deflation, if the price of everything goes down, people won't spend their money, because they will rather wait, and that is bad for the economy.
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The problem bothering me with deflation is if humanity is ready for it? If prices go down and ppl hoard then only the most necessary goods and services will be bought and sold: food, utilities… maybe even hair cut will be mostly handled by yourself
I see such a world as rather good - instead of new iphones each year we could put more efforts into space research, cancer fighting and thats all
However, most of the people seem to be quite good with iphones, hollywood movies and new dresses
Are you sure the humanity wants deflation and not just a tiny minority of people are ready to sacrifice current lifestyle in favor or the greater good?
I see such a world as rather good - instead of new iphones each year we could put more efforts into space research, cancer fighting and thats all
However, most of the people seem to be quite good with iphones, hollywood movies and new dresses
Are you sure the humanity wants deflation and not just a tiny minority of people are ready to sacrifice current lifestyle in favor or the greater good?
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