Why is deflation bad? whats wrong with my money becoming more valuable over time?

> muh economy

All essential services will still need to be bought on a regular basis. People aren't going to hold onto their money to starve, not get medicine, etc just so they can see a 2% gain in wealth. They will be more hesitatant on luxury items/services so deflation kind of acts like a luxury tax, which I approve of.

>They will be more hesitatant on luxury items
why tho?

Because in the context of a deflationary currency it actually makes sense to save up your money.

Do you honestly think this isn't the current case?

People would be incentivised to spend/invest when they think their asset will fall in value and hold when they think it will rise in value. They will still use it to purchase basic goods as long as it is fast and efficient to do so using the asset.

Extreme deflation, caused by irrationally tight monetary policy, has historically been far far worse than extreme inflation.

This slows the economy.

Thats why deflation is bad.

Because money is just a piece of paper. We don't want people hoarding pieces of useless paper, we want them to buy things, so that people will be encouraged to make things for them to buy.

Wealth has to be invested for it to outgrow inflation is better then grandma shoving money underneath the mattress.

normies can't save money, they're too dumb, so they'd die out and the world would collapse

You can just tell from this picture that she had him late which made him turn out autistic and short.

Deflation isn't bad unless you're deep in debt
>honey let's take a vacation
>sorry babe not this year, let's just save the 10k and watch the purchasing power grow by 1.5% per year
>Chad takes your girl on vacation instead since people actually want to spend money/have fun/live life and the deflation alone won't make you wealthy for a long time (multiple decades) unless you already have a big amount

Boosting the economy with fake bank notes only creates more boom bust cycles with the banks winning in the end and people in debt. Its better for the economy to grow slow naturally.

There's no proof for this outside of ivory tower douchebags like Paul Krugman making up some bullshit theories based on perfectly rational actors, perfect information etc
The reality is that people right now go into debt to do things like renovate their house, take a trip, but a car, etc
Why would those habits change if they find out they can get all the renovations, trips, cars, etc AND avoid debt, AND have a little left over in savings?
If anything, people would spend more on luxuries

Shut the fuck up with this rhetoric. The majority of jobs are in the service sector and as such do not contribute to the progression of the country. If you're worried about people hoarding money, how is it worse than when I pay someone to do something for me I could have done myself?

it is great people would save, and this would give funds to invest in project that return more funds.

>this is what the goy actually believes
>implying there isn't a tremendous wealth divide now because of this debt based consumerism system

It's not bad. People who disagree with this usually follow conventional keynsian wisdom and don't understand that
a. Prices tend toward favorable equilibrium between buyers and sellers in any free market, and
b. the Great Depression, the default 'deflation is bad' example, was actually caused by an instantaneous 30% deflation of currency supply and ridiculous tarrifs after a period of very high inflation and record outstanding debt obligations made possible by fractional reserve banking.
The 'problem' with "deflationary" currency is that it doesn't enable usury.

>be wagecuck
>make $10 an hr at kneepads r us
>if i hold onto this money for 1 day itll be worth $11
>guess ill just hold off on buying anything today
>economy crumbles

Nigga what are you talking about
There isn't 10% deflation per day, retard
In a free market you'd probably see something like 1-2% per YEAR
Also
>guess I won't pay rent this month
>guess I'll hold off on food today
>guess I'll hold off on gas to get to work
>guess I'll hold off on all bars, clubs, movies, sports because tomorrow I'll have an extra dollar
Fucking retarded faggot
Neck yourself asap

you can pretend that your arbitrary number is more correct than my arbitrary number if that helps you sleep at night. also yes, thats exactly what would happen

Yours is retarded, his is plausible.

>be wagecuck
>have my daily / weekly / monthly real economic needs
>deflationrate of 4%
>everything I buy gets cheaper
>my wage stays the same

>be wagecuck
>have my daily / weekly / monthly real economic needs
>inflation of 4%
>everything I buy gets more expensive
>my wage stays the same

Reality for 99% of people

noone would sell you stuff because tomorrow they could get more money for the same thing.
But then again, the day after tomorrow they would get even more. This cycle would almost halt the economy.

The amount you'd get tomorrow would be almost exactly the same as today
If you could somehow fast forward 10 years, then sure, it might make sense to wait, but you can't do that
A $1 item wouldn't shoot up to being worth even $1.01 the next day, it would take a year or so and the market would adjust
Also, people buy more when prices are cheaper. It's literally economics 101. Demand is higher when prices drop.

They wouldn't fucking give a shit, inflation can be outpaced by a small amount relatively easily by any normie and they don't fucking do it. When they take on debt for shit they aren't thinking about muh inflation, they just think they want to get the shit.

Well this shouldn't happen, because eventually as things are cheaper some goys should be willing to do your job for less money. In the current situation they want to do it for more money, so they keep you because you are cheaper until you are so BTFO you go looking for more money elsewhere

why choose to be this retarded?

you are right for things of daily use.
Raw materials on the other hand will be hodled as long as possible to get better prices

Deflationary money doesn't allow for central banks printing money they lend to other banks who lend it to industries in a game of musical chairs that give "everyone" (read: the right people) endless money for no work. That's the gist of it, the rest is window dressing.

Inflation is an inequality generator, and this is desirable because in truth we love inequality. We want to be loved. Money itself is a proxy for social capital, and what is social capital but love? By definition you can't have equal love, else it's meaningless.

Here's a radical idea.

How about a currency that's neither inflationary nor deflationary. Something with stable value that can always be used as a reference point.

I'm probably retarded for suggesting something like this.

allegedly deflation was precursor to great depression

thats why everyone so scared of it now

you can buy the latest iphone for 50% original price in a year after release, ie iphones have 50% effective deflation per year.
thousands of people spend days camping in front of apple stores to buy those shitty phones on release day. people dont give a fuck about deflation, if theres something they want, they will go out and buy it.

this, wtf

Here ya ho

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>no one came to my party
who was phone?

People would still buy stuff they actually need and want. The government entity is the one who benefits from a 'good economy' because it has more content to get tax from.

Tax.

Not surprising no one has mentioned the obvious since Jow Forums is full of brainlets...

In a deflationary environment creditors wouldn’t be able to make a profit because people won’t default on their debt so easily. It’s literally (((their))) worst nightmare

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there is no federal bank