They way it was explained to me is that a little bit of inflation is a good thing. Theoretically workers should get raises Based on the inflation rate one of the reasons things are so bad right now is that that isn’t happening but I digress. If your money is worth more then people will be layed off
Companies can't function with zero employees. A system that requires annual raises by choice doesn't seem optimal. It seems like a way to subtly control and manipulate who gets more or less out of those raises
Companies can't function with a loss either. So as often happens with deflation, they just stop existing because as you correctly pointed out they can't function with 0 employees but nor can they pay more. So a huge loss of jobs happens accross the economy
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u/thevoidthatjerksback 8h ago
I doubt that anyone could explain this in a way where I would accept deflation as worse