It means price can't go up anymore because ppl can't afford, businesses need to slack ppl off to stay afloat, which make ppl poorer and even less capable of buying stuff.
I would argue than inflation such as quantitative easing is a tax on those who lives on a salary while the rich who depends on their investments can't care less. It's also beneficial for ppl with large debt (again rich people's) gor the actual value of the debt is diminished. Imagine buying a 6 plex for a million and now it worth 2 millions...the real value didn't changed but your debt got cut in half.
Deflation is what happens when the system breaks because the gap between the rich and the poor is too wide. Imagine the same example of a 6 plex that cost now 2 millions but some renters now rather live in a tent because your rent to make your investment just even is too high for these renter. Now you loose money because you can't rent all the units. Everyone looses in Deflation, it's a hard reset when the gap between rich & poor is too wide
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u/SuspiciousSnotling 9h ago
Deflation is worse than inflation.
It means price can't go up anymore because ppl can't afford, businesses need to slack ppl off to stay afloat, which make ppl poorer and even less capable of buying stuff.
It's a death spiral