this post was submitted on 30 Dec 2024
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cross-posted from: https://lemm.ee/post/51182148

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[–] [email protected] 55 points 1 week ago (66 children)

Not exactly. Deflation basically slows down the economy. If you think your money will worth more tomorrow, then you are less likely to invest/spend them.

But the whole purpose of money is to be used. Money is a tool, the oil that facilitates trade and keeps the economy going. And while too much money(oil) can overheat the economy(inflation), too little money can straight up bring the economy to a halt(deflation).

Deflation, even in small amounts, is more dangerous, thats why ideally you prefer having a small amount of inflation.

[–] [email protected] 22 points 1 week ago (38 children)

"The economy" in this instance being a playground for the rich.

People won't stop paying for food or rent just because their money might be worth a little more tomorrow. They won't skip buying minor entertainments just because maybe their meager salaries might be worth a little more next week.

Deflation is poison for the owner class, not the working class.

[–] atzanteol 1 points 1 week ago (14 children)

They won't skip buying minor entertainments just because maybe their meager salaries might be worth a little more next week.

Have you never seen somebody wait for a sale to make purchases? Or cut coupons? "The poor" frequently put off purchases to save some money.

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