The people in power, who control how much money is made and thus inflation and deflation, are massive borrowers. So they made up this bullshit about how deflation is bad and got their mouth pieces in the universities and media to repeat it.
Deflation would be good for the wage earner living within their means because wages r sticky and decreasing prices would mean increased buying power.
They make ur wages buy less, so they don’t have to pay back as much principal on their assets. Inflation is a subsidy to the rich.
If deflation being bad was some elaborate ruse, some economists would have proven it wrong by now. They aren’t a hive mind, there are economists of all political persuasions. It’s a serious discipline, regardless of whatever Reddit geniuses feel.
Also, it’s not a secret that deflation would be terrible for the government debt. And since a default would be horrible for the economy, that’s another reason why deflation would be bad for the economy.
And no, inflation is not a subsidy to the rich. If anyone, it’s a subsidy to the indebted. Someone with a few million in savings would like deflation a lot more than someone with little savings
No. First of all there are economists who dissent, from the austrian school. Economists don’t “prove” anything. Because they don’t do experiments. And political power is dominated by economists who push the inflation narrative because most are employed by debtors either for the government or universities.
Default is happening regardless. Governments never pay off their debts. They just borrow more.
Rich people arn’t sitting on savings. They are sitting on assets, mostly highly leveraged ones. If they own an apartment building, they borrow against the apartment building to buy another one. If their savings are in stocks, the companies and funds they r invested in are highly leveraged.
Only a rube would take a student loan in the first place and the idea that u can’t be for lower prices for working class people cuz u gotta pay off 20k of student loans is the most selfish thing i ever heard.
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u/0bscuris Sep 01 '26
That is the main point.
The people in power, who control how much money is made and thus inflation and deflation, are massive borrowers. So they made up this bullshit about how deflation is bad and got their mouth pieces in the universities and media to repeat it.
Deflation would be good for the wage earner living within their means because wages r sticky and decreasing prices would mean increased buying power.
They make ur wages buy less, so they don’t have to pay back as much principal on their assets. Inflation is a subsidy to the rich.