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Cake day: January 8th, 2024

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  • A slow deflation would not be a big issue. It’s rapid deflation that causes major problems. Inflation itself is actually a tax on the poor because people who actually are wise with their money and attempt to save it see it losing its purchasing power over time and therefore have to take more risk than they otherwise would with it in order to just keep up a standard of living. People closer to the inflation spicot, such as government workers and companies run by billionaires, get the benefits of the dollars before the rest of us do, and therefore can use them at their full purchasing power while the rest of us get diluted. Sure, you may decide you don’t really need that flat screen TV if your money is gaining purchasing power at like 0.5% per year because it would be cheaper next year than it is right now. But you are still going to buy toilet paper and spaghetti and other types of food unless you want to starve to death, which I don’t think most people do.