this post was submitted on 29 Jun 2024
180 points (96.9% liked)
Socialism
6092 readers
12 users here now
Rules TBD.
founded 6 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Deflation is really really bad. On a societal level, if people expect prices to fall, they will withhold spending today in favour of tomorrow. This decreases demand, decreasing prices, accelerating deflation until collapse.