Anti-deflation people are just retards

The real issue is the monopoly on currency. Let the market decide.

This isn’t the argument. The argument is that people will be less likely to actually invest their savings, because the value of their dollars is consistently going up.

Sound money built the modern world. From 1820–1914, gold-backed money financed railroads, canals, telegraphs and electricity through private savings not deficits or central banks. Prices stayed stable. Living standards doubled in a generation. Productivity made goods cheaper.

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So the American experiment was so successful because they strangled producers with a centrally planned economy?

Extreme strawman lol. It's an obvious matter of fact that people will purchase less stuff with deflation because there are some people who are marginal in this regard. Their time preference is closely competing with the changing cost of the good.

I wish his comment about laptops getting cheaper held up.

inflation is bad, deflation too true free markets tend to 0% inflation/deflation

Link to this full lecture?

Okay. Delete all the money out of everybody's bank account tomorrow. Let's see how the economy goes.

Do you think I am advocating for destroying money? I am advocating to leave well enough alone.

Deflation is always and everywhere a monetary phenomenon.

@liquid2ulu Do bank runs cause capital goods to disappear? Employees to lose their skills?

@liquid2ulu They literally cause mass unemployment, factories closing, industrial output to cease, destroyed crops, famine, homelessness, crime, social and political collapse, usually followed by an authoritarian government, okay Mr. Anarchist?

@liquid2ulu So deflation does not in fact cause factories to disappear or employees to lose their skills, thanks Sorry phaggot, investment comes with risks and sometimes insolvencies force assets to go to other hands. Don’t use commercial bank deposits if you can’t handle the risks

@Daniel86Cycles @liquid2ulu Ok but inflation also doesn't cause factories to disappear or employees to lose their skills.

@cutupcado @liquid2ulu Weimar.

The fact people think inflation is normal and required is the biggest psyop ever.

Thai just lowers the incentive to buy and start businesses which slows down economy. It’s plain and simple, only a retard does not understand this.

People always like to bring up shit like "deflation causes businesses to fail and people lose their jobs" while currently living in an age where the currency has been inflated like crazy and unemployment is high

The economic illiterates in the comments are making me facepalm to the point of TBI. Physically painful.

Imagine a state that taxes people just to destroy the money as a means of funding programs by leting the selected fiew hold the money that increased in value. Thatd be too honest, its easier to "tax" via money printing.

If none of us ate this month because we thought the price of food would be cheaper next month we would all starve to death!

@ComicDaveSmith The 2% target is “optimum” because it grows asset prices faster than wages at the maximum rate before the working class notice. It keeps the middle class from catching up and disrupting the social order. The optimum speed at which to boil a frog

this is wildly ignorant. i. the lost decade (which has turned into decades in Japan) was introduced via the Plaza Accord yet exacerbated by deflation. ii. deflation increases the future value of debt loads. the world doesn't run on money, it runs on borrowed money.

Lmao this is the argument Austrians have to present against inflation targeting? Atleast do what you do best and argue about decentralized information or something. This is just a strawman

This isn't the argument, by the way. The argument is a deflationary spiral. Contracts, debt, wages etc are denominated in nominal dollars. If you see a contraction in NGDP because of deflation, then you'll get an economy-wide spiral of defaults.

this is so dumb it genuinley boggles the mind. Bad Faith argument, basically zero understanding of even the most basic economic principles. Not everything is buying a cup of coffee or an iphone. and even if it was, consumer spending is only 65% of GDP

How is it a beneficial monetary policy where holding cash competes with investment returns?

Day-to-day consumption of goods isn't what causes a deflationary spiral, it's the discretionary purchases that are the killer, especially the bigger ones. I'm sure most of us have often waited for something to come down in price before buying it. Imagine that phenomenon en masse.

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That’s actually a good point

Prices are not inflation/deflation. It's a bad thing to shrink the money supply.

We're supposed to believe the country that can't wait to get the newest iPhone is going to starve itself waiting for cheaper bread tomorrow.

This is dumb af. The point isn't that everybody will stop buying everything . The point is that at a macro level if 50% were going to buy (eg) a car this year, but expecting better deals next year, it dropped to 45%, that's a big demand shock.

Targeting 0% inflation can make recessions more likely or more severe because it leaves no positive inflationary buffer against deflation, sticky wages, debt deflation, and the zero lower bound. This leads to 0 growth, like in Japan, the ideal example of 0% inflation folly.

exactly, they claim "oh but if the prices start falling, nobody will buy anything b/c they will just wait for it to get cheaper and then we will be in a depression." Meanwhile every year of my adult life TV's have gotten better, cheaper, etc and people still buy them like crazy.

Why take the risk of investing in a company when the economy is suddenly a lot colder and your cash is becoming worth more by the day anyway. Old debt burdens also become relatively more expensive by the day causing less business activity. +zero lower bound.

Callings people retards and then citing Tom "Tar Baby" Woods of all people is peak irony. I won 2 debates with this loser when I was in high-school and he blocks everyone who embarrasses him lmao

I wonder if a core of the issue is that most moments of deflation in history are also moments of deleveraging (usually malinvestment). Deleveraging causes economic contraction and pain, it also causes monetary deflation, but it's not deflation itself that leads to the malaise.

They put Von Mises' name on the podium where a dumb kook is arguing against a strawman. Shameful.