There's a reason economics is referred to as

by A K Church, Thursday, August 10, 2023, 04:47 (407 days ago) @ Slow Hand

"The Dismal Science". I took one economics course in college, and was lost from the first day. I never caught up, either. It was like Jr. High algebra all over again. Bad time, bad time.

But I do know deflation comes with its own set of problems. If people expect the new car will cost less in 6 months, they put off buying it long term, and if a few million people aren't buying the car...factories shut down.

Communist China's going through that right now.

Most economists will tell you that you either have inflation of deflation. You can have growth in times of inflation, but generally not in deflation. So moderate inflation is necessary according to this line of thought.