No. Deflation means thing that costs 20 today will cost 19 tomorrow. Why buy something today, when you can buy it for 1 less tomorrow? Why buy tomorrow when you can buy the day after tomorrow. And so on and so forth. Under deflation, the entire consumer side of the market collapses, no one buys anything anymore. Producers cannot produce more because it will cause loss, and they aren't gaining capital. No buying/selling, liquidity drops, economy's dead. Recession.
Most things that are bought aren't bought because they will be worth more tomorrow. They are bought because they are wanted or needed. They will still be wanted and needed. I will gladly buy my board game knowing I could have bought it cheaper tomorrow. Because I want to play my board game. I don't want to wait an infinite amount of time not playing it just so it can be cheaper.
Also deflation is not an infinite exponential. It can never be. It would be impossible to buy an infinite number of things with 1 dollar. What you buy will always have value and cost. That can't be erased. Deflation just removes imagined cost. It forces it down to where it is only what it actually cost to make and what value it actually has
Truly more things will actually be bought because there will be more capabilities for people to buy things. Because they will be able to buy more things with the same money. And if you know anything about people you will know that they love buying things
You are an irrational actor then. Rational actors will buy things cheap. Which means, they will not buy today which can be bought tomorrow cheaper. Producers are forced to drive their costs lower and lower, and turn in and cut losses as fast as they can. Then, production will stop because it is nigh guaranteed to incur loss. No one buys, no one sells. Any market wants its liquidity to be high. Deflation essentially freezes everything.
People aren't rational actors. The term rational actors is completely made up by people who don't know anything. People are inherently irrational actors. We have countless evidence for this. There is zero evidence that the average person is really going to care enough to wait. Especially because the actual rate of deflation would be too small to care about. You're treating the concept of .1% deflation as 500% deflation compounded daily. The majority of things that we buy will still be bought. At worst it gives people a second hesitation on things that they never would benefit buying in the first place
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u/HollowCap456 8h ago edited 7h ago
No. Deflation means thing that costs 20 today will cost 19 tomorrow. Why buy something today, when you can buy it for 1 less tomorrow? Why buy tomorrow when you can buy the day after tomorrow. And so on and so forth. Under deflation, the entire consumer side of the market collapses, no one buys anything anymore. Producers cannot produce more because it will cause loss, and they aren't gaining capital. No buying/selling, liquidity drops, economy's dead. Recession.