INFLATION = every dollar in your pocket you don’t spend will buy less next year
DEFLATION = every dollar in your pocket you don’t spend will buy MORE next year.
Without even putting your money in the bank to get interest....every $1.00 you don’t spend will buy you more goods 12 months from now. Because the ketchup that costs you $1.00 today will cost you $.95 in 12 months from now. So you will have $.05 left over to buy a small candy bar in addition to the ketchup
Deflation destroys the incentive to run out and buy stuff. With inflation you have an incentive to run out and buy things because prices are always going up. Since our economy is so dependent on rampant consumerism and consumers buying things....Deflation deals a death blow to this kind of economy
A consumer driven economy needs inflation to propel it forward
Sounds good. Bring on the deflation!