• m0darn@lemmy.ca
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    4 months ago

    There’s one before that too:

    Workers: well at least prices will go down in aggregate, so our dollars will be worth more due to deflation

    • Xavienth@lemmygrad.ml
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      4 months ago

      Deflation is really really bad. On a societal level, if people expect prices to fall, they will withhold spending today in favour of tomorrow. This decreases demand, decreasing prices, accelerating deflation until collapse.