Actually the above is exactly look what happens The great depression was cause by deflation and many many went hungry
Yeah, the problem there was the depression, not the deflation. Look at Japan. They had how many years of deflation without a depression or falling living standards
Look at Japan. They had how many years of deflation without a depression or falling living standards
Ah, yes. The so called "Lost Decades" during which Japan went from being the undisputed #2 economy of the world, with a GDP only 2x smaller than that of the US, to now being the #4 economy with a GDP 8x smaller. With growing wealth inequality, despite a barely growing economy.
I'm under the belief that the western capitalist world could do good with a brief deflationary period if one were actually achievable (without a crash), but pointing to Japan as an example of "deflation" done right is asinine.
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u/HalfEatenSnickers 7h ago
Actually the above is exactly what happens
The great depression was cause by deflation and many many went hungry
Shanty towns became the standard because noone could afford to live in homes or rent apartments
And cheaper isnt quite right
The rent will go down but only because you have less in your pocket meaning less to spend anyways