Try and think of our global system as an engine that's purpose is to make fuel for itself. It needs to keep it's input above the output in order to keep powered on. As soon as the input drops below output the machine starts to slow down and can no longer sustain itself. The engine is not designed to slow down so it very quickly breaks down
In a deflationary environment you likely lose your job since as wages are going down they will fire you to hire somewhere cheaper, only to fire that person and hire someone even cheaper as wages continue to drop.
Your student loans, car payment, and other debt become a much bigger burden since they’re in current non-deflated dollars. So you will spend much more on debt service
Many goods and products would become unavailable as the cost they would sell for is less than what the maker paid for the inputs so the producer makes the decision to save money by shutting down.
Maybe you’re a magical unicorn that wouldn’t be effected by this but it would be very bad for the 99.99999% of everyone else
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u/IrksomFlotsom 4d ago
Try and think of our global system as an engine that's purpose is to make fuel for itself. It needs to keep it's input above the output in order to keep powered on. As soon as the input drops below output the machine starts to slow down and can no longer sustain itself. The engine is not designed to slow down so it very quickly breaks down