deflation is kinda ironic

[Naer]

The idea of deflating something seems suspect. Wouldn't total deflation be no money at all? Inflating the currency would be a better idea cause if you made scarcity abundant, by definition, you will have combated things like poverty. If it starts snowing gold tomorrow, deflating gold would not make sense since scarcity of gold has evaporated. If i code and create a game, it cost next to nothing to reproduce, and can easily get to anyone with an internet connection. If im at a doctors office expecting an injection for my illness, it would be kinda of absurd to be asked to complete arbitrary task in order for you to get an injection. I guess i just don't why injecting wealth is such a bad concept. Copy currency as a game developer has his games copied at no coste. Inject wealth as a doctor injects medicine into his patients. no questions asked

 

[sdifox]

Stick to Sesame Street lest you hurt your precious few neurons.

 

[Dr. Zaus]

Inflation reduces the value of money you hold and money owed to you - as such a lender must add an inflation risk premium to interest.

This makes everything you buy on credit more expensive.

 

[Darwin333]

Actually no inflation or deflation would be best but inflation is generally bad for the little guy as their pay usually doesn't follow, at least not for a while.

 

[brianmanahan]

deflation is worse than low, steady inflation because deflation rewards hoarding money instead of investing it in the economy or loaning it to others in order to do that.

deflation was pretty common for short periods in the US in the 1800s, but there was a prolonged 20 year deflation from the 1870s to the 1890s.

 

[Dr. Zaus]

deflation is worse than low, steady inflation because deflation rewards hoarding money instead of investing it in the economy or loaning it to others in order to do that.

Right - if money is losing value you have to do something with it to try and help it keep value.