Companies, at least the larger ones, aren't making profits. They're basically just pumping stocks. No one has a job right now, and no one's buying anything. The entire global economy is just running on assets going up. There are literally no drawbacks to deflation anymore. The only thing that would happen is that stuff would stop getting more expensive.
I don't even know where to begin but you did not live through the 2008 recession if you think nobody has a job right now. As bad as today's economy is, and no one is arguing its good, it's not even close to an actual recession. Unemployment at the peak of 2008 was over double what it currently is. "There are literally no drawbacks to deflation anymore" the economy will crash, businesses will close en mass, large corporations will be protected by the government while everyone else will go broke. The value of ANY debt you have will increase in real terms while you would be lucky to get a pay cut if not lose your job entirely, so you'd be paying 10% higher in real money while making 10% less in real wages. There is a reason the only real deflationary periods in modern US history have been during recessions.
Honey, we all lived through Covid. Do you really think 2008 unemployment numbers scare anyone anymore? As for the debt and not really making "real" money, this is literally happening right now.
It's like me saying I earn 0 dollars and you arguing that during deflation you will earn 1000 times less. Real scary shit there bud. Not being able to eat because you can't afford it and not being able to eat because no one's making food are still the same thing at the end of the day lol.
Economic growth basically only matters to businesses and governments.
And even then, Japan managed to do quite well with decades of deflation.
Also, I was there in 2008 and guess what, the world didn't end and we're all alive.
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u/BasedKetamineApe 7h ago
Companies, at least the larger ones, aren't making profits. They're basically just pumping stocks. No one has a job right now, and no one's buying anything. The entire global economy is just running on assets going up. There are literally no drawbacks to deflation anymore. The only thing that would happen is that stuff would stop getting more expensive.