Don’t be in debt during deflation. The debt doesn’t deflate, but your income, and your ability to pay it will. Otherwise, deflation can be good, if you can keep your income up past the rate of deflation.
The bad thing is that anyone who owns a business is always losing money. They buy their inventory at the beginning of the month and by the end of the month the value of their inventory is down, so they have to lower prices.
hm.. never thought much about deflation... wouldn’t people making minimum wage do good then in a deflationary environment? the cost of everything they buy would go down but their salaries would stay up?