No, the rich also get richer because everyone loses their jobs/houses/land/farms. Sure, they'll lose a lot in the short term, but as we saw in 2009+, private equity really started ramping home purchases and discount companies. The number doubled from 7% to 15%. It wasn't a long stay in deflation, but the same cycle will repeat even through a longer period of deflation.
Who gets to be rich absolutely does change though. Bad investments during a recession will become worth nothing. Those that survive then need to decide if they're still too scared to buy up foreclosed assets (6 more weeks of winter aka continued deflation), or if they're ready to bet on assets increasing in value again.
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u/beatthedookieup 8h ago
It signals stagnation in an economy since there is a low consumer demand, which could lead to layoffs and others things of that nature.