Hobbits disagree with you on that. Also banks pay interest on savings accounts. Arguably the richest already are on the do nothing train. Deflation would just allow for everyone to benefit from that
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.
Well, for people it's because they need them now and they don't care, maybe with stuff like homes they can wait some time (but even then they are paying for renting in the meantime, so it is still not worth it to wait). And business needs stuff and services to operate, they can't just stop working and wait.
And business needs stuff and services to operate, they can't just stop working and wait.
Exactly. But they only need to operate if they're making money. If no one is buying, you don't continue to produce your product. You close shop. Then you lose your job. And no one is hiring, because every business is failing.
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u/thevoidthatjerksback 8h ago
Hobbits disagree with you on that. Also banks pay interest on savings accounts. Arguably the richest already are on the do nothing train. Deflation would just allow for everyone to benefit from that