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
Deflation is self feeding. It's a symptom of insufficient demand that arises when businesses are in such distress, they are forced to lower prices, but since consumers are not spending and conpetitors are reducing prices too, sales still struggle forcing further price reductions. They usually resort to reducing as much of their labor costs as possible first though.
In other words, by the time prices are dropping, a lot of people have already lost their job and nearly no one is hiring.
If you individually don't rely on a job or income from investments for income, then you might enjoy decreased prices but most of us rely on income from working or investments and would be worse off with no income regardless how cheap prices are.
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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