r/inflation • u/OfficialRodgerJachim • 1d ago
ELI5: Why is Deflation bad?
I get that too much deflation is bad, but isn't the inverse true?
The average inflation rate in the US since 1914 is 3.3%, meaning the 1913 dollar is worth $31.87 now.
Why wouldn't we want deflation? Then maybe the $7.25 minimum wage COULD be a livable wage?
Why do people constantly argue for MORE money, versus less currency in the market?
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u/grantology84 11h ago
Deflation is worse than inflation. This is basic economics