Please tell me why deflation is a bad thing unless you are in debt?

Please tell me why deflation is a bad thing unless you are in debt?

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Because then nobody will get into debt

>Deflation occurs after or during an economic downturn
>People choose to hoard money rather than spend money because of dropping prices and increasing value of money
>Companies compensate for low demand for products with layoffs, widespread unemployment

If you dont have debt you can live of your savings until the economy recovers

That's a big "if", because only 20% of Americans are free from any type of debt.

Well maybe if we had deflation people would save instead of go into debt

This unironically. Investment is debt, and without investment economy stagnates. And that does not mean ebil jewish bankers will get poorer, because who do you think will have most cash on hand?

no incentive to invest causes economic stagnation. macro 101

> Investment is debt,
it is also equity
The tech industry has has massive price declines and is doing fine

>no spending
>no demand
>no jobs
>no tax dollars coming in, government cannot operate
Basic economics.

There is so much debt already that it is nearly an impossible problem to fix. The consumer economy, started in the 50's with the "American Dream", leads to people spending more than they can afford, which is part of the reason the Great Depression occurred.

>people would save
>consumer credits exist
No, 80% of people cannot manage money

If they had consequences then maybe they would start
>an impossible problem to fix
mass liquidation

>>no spending
>>no demand
>>no jobs
when has this ever happened?

this is the most retarded thing i have ever read
saving is one of the reasons why economic downturns/deflation occur

What are you talking about
They occur because people are over leveraged

Only during every economic downturn in the history of our country.
If people can't or won't spend, companies can't sell. If companies can't sell, they can't pay their employees. If they can't pay their employees, there are layoffs.

>rich people start setting up new businesses because labour is dirt cheap

>no
I think you mean less
It is a natural correction that will fix itself

BIS paper showed deflation is harmless.

Because macroeconomics is a (((religion))), the central bankers who fund BIS promptly ignored the paper and continued inflating.

>starting a business in an economic downturn where there is no incentive to invest

They already have consequences, often dire, and people do not start.
>people take 20 year mortgage in USD in flagrelated
>people take credit for tv
>people take credit for vacation
>people take credit for wedding

over leveraged and high interest rates at the end of a boom means people are more likely to save and stop borrowing, hence causing the downturn

Business are started all of the time
Are you saying nobody started a business in the great depression
>They already have consequences
Not really
they Fed is there to inflate away their bad debt

Because Keynes is the only economic system taught in college and Keynes requires perpetual growth to keep printing money and handing it out to colleges.

>NOOOO don't buy this product while it's cheap goy, it's bad for business!

Ok but there would not be a problem if people were not over levered

>tfw you fell for the 16 MiB RAM meme

>when processors were made from 24k gold

> people choose to save money for the future rather than waste it on useless garbage while still paying for the necessities of life and things they can afford
corrected that for you jew

youtube.com/watch?v=PHe0bXAIuk0

underrated post

I know Keyne's especially pushes for growth, but isn't the point of capitalism is that there's always growth with short periods of stagnation?