viktorvsk on nostr

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. ...

Viktor Vsk @viktorvsk 1697751343

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?

Viktor Vsk · 127w

As an example look at waste sorting and recycling. Its a very important thing in fact. But people don’t want to so this. And we need govt to force people to do at least something. And its extremely inefficient but at least something. Is it feasible to get there without govt stimulus as a human kin...

Code & Psychology ⚡️ · 127w

I think that's the beauty. If economy is not growing, there is no deflation. So if people are not spending, economy will be slower, deflation will be either slow, or not even there. Deflation only occurs if money supply is fix, and economy is expanding. But it won't expand, if people are hoarding m...

Guy Swann · 127w

The simplest way to understand natural deflation is that everything keeps getting more affordable. That’s it. Instead of everything getting more expensive, it all gets more affordable with time. For the simple fact that all the capital goods and technological innovation we create make them easi...