Low inflation might be the first step towards deflation. Many economists would argue that deflation is a worse situation for the economy because it leads to a sharp drop of consumption and therefore a huge recession follows?
You lost your job but you don't care because prices are going down. The factories that build stuff have to fire more and more employees to make ends meet because anyone with money would rather hoard it to wait for even lower prices. You are still unemployed, but now so is a lot of people. Your chances of getting a new job are even lower than before. Higher unemployment leads to higher crime, and the rich guys can afford to live in gated communities with private guards, so your chances of getting robbed are higher than before.
Think less of it then as losing your job and more that any job you get in the future will pay less and that while you make less and everything you own is worth less the stuff we import will still continue to rise in price because thier economy wont be deflating
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u/StuartMcNight 8h ago
Low inflation might be the first step towards deflation. Many economists would argue that deflation is a worse situation for the economy because it leads to a sharp drop of consumption and therefore a huge recession follows?