I never do, that's why I said "nasty bouts of deflation" instead of "awesome bouts of deflation".
It's why, after printing a few billion, the Fed lowers interest rates to attract borrowers for it.
The Fed "prints" money by buying bonds. They don't need to do anything to "attract borrowers for it".
One way they could adapt is by lowering salaries every year
Why would they do that?
Monetary deflation. Prices decline across the board. Even the price of labor.
If they're profitable and improving productivity, there would be no need to lower salaries.
What if they aren't improving productivity? What if they are but still have debts to repay, debts that get more onerous every year. Despite your feeling that a steadily more valuable currency is a good thing.
The period from 1873 to 1913 when the U.S. was on the classical gold standard saw a spectacular increase in its wealth, income, and power.
As long as you weren't crushed by deflation.....
It can work.
No, deflation can't work.
Well, now it's obvious that you don't understand the concept and really aren't even trying to.
To begin with, under a gold standard there is no monetary deflation. Monetary deflation is a reduction in the amount of money in circulation. Under a gold standard, there is no monetary deflation. There is either monetary stability or a slight monetary inflation because of changes in the production of gold.
With a stable money supply, prices will tend to decrease because entrepreneurs strive constantly to make their operations more efficient. They introduce capital into the production process so as to produce more goods for the same or less cost.
With more goods produced at less cost, prices will drop as a result of competition. The same thing happens now but some of the price decreases are obscured by price increases caused by the inflation of the monetary unit.
The wages of labor, though, are increased by improved productivity. Employees' annual pay raises are not, contrary to popular opinion, taken out of their employer's profit, but are a result of the extra production each is able to achieve due to capital improvements.
The same would be true without government printing more money each year to make you feel better. Nominal wages might remain the same, but purchasing power (which is what everyone is really worried about) would increase.
What if they aren't improving productivity?
Then they're going out of business whether there's more dollars in circulation or not.
As long as you weren't crushed by deflation.....
If you were, you were a lousy businessman.....
Why is inflation so important to you? Why is the government's printing more money crucial to business development? If you don't answer that, but only throw another half dozen hypotheticals at me, don't bother to wait for a response. I've answered your questions. Do me the favor of answering mine for once.