[Bubba Ho-Tep]

Perhaps you should tell chip-makers and computer manufacturers that the secret to increasing sales is to raise the price of their products rather than lowering them.

Reduced price of one commodity or another due to competition or efficiencies in production is not deflation.

During a secular deflation, one would only go into debt if the project will pay off more than the rate of deflation.

The problem is existing long term debt, such as mortgages and bonds.

See above: fallacy

We don't really know, since deflation on that scale has never happened, but the Great Depression came pretty close to meeting that description.

[BfloGuy]

Reduced price of one commodity or another due to competition or efficiencies in production is not deflation.

Of course, it is. It's exactly what you're worrying about. Prices dropping.

We don't really know, since deflation on that scale has never happened, but the Great Depression came pretty close to meeting that description.

We do know. From about 1870 till the start of WWI, the US [and the rest of the developed world] was on the classical gold standard. Prices dropped about 1%/year during the period. Economic growth was very strong.

but the Great Depression came pretty close to meeting that description.

This is the third time I'm saying this: deflation caused by government action [raising interest rates after a government-caused fake boom] is bad. Deflation caused by a stable currency and improvements in productivity is good.

You made a blanket statement that deflation is bad. I've been trying to point out to you that it's the cause of deflation that's the issue -- not deflation itself. Why are you fighting me?