| | | Short summary = people who argue deflation is terrible and inflation is good are useless drug addicts who want to feel good on opm without doing anything useful. They think they should be able to borrow money and make money from the suckers who thought it a good idea to learn, work, save for the future. The drug addicts want a free fix. Like regular drug addicts, their addiction grows until they are face down unconscious covered in vomit in a gutter. They'll blame their creditors, their government, banks, anyone when they can't service their debts. They'll demand interest rates be lowered and money eased or there will be economic hell to pay and everything will go wrong. They need another fix and they'll rob banks to get the loot.
If they think their economic activity is a good thing, and they need more money than their profits provide to produce a huge amount more of the good thing they produce, then they should put a sign in the window = shares for sale, we need more money to boom = you can turn $5 into $10 if you invest with us. They don't need to borrow money. There are $trillions available to anyone who can turn $5 into $10 in a couple of years.
Deflation due to improved productivity, great inventions, economies of scale, reduced spending [not on war against Russia for example] is wonderful.
If I can buy a car for an hour of work, that's a good thing.
If computers get so cheap that I can have supercomputers in my pocket that's wonderful.
If food is so cheap that I barely need to lift a finger to buy it, that's great.
Deflation shroud wavers can't find an actual deflation problem in all of history. If they quote the Great Depression, then they are showing ignorance. There was debt then. There were margin calls then. There was monopoly government doing stupid stuff then. There was speculative mania then. The prices fell and that wasn't the problem, that was the result. The problem preceded the prices falling.
To the extent that economic collapse and falling prices were a problem, it was because crazed speculation and then market clearing delays. Which yet again is a government problem = it takes too long for useless borrowers or failed business owners to hand the assets over to somebody who can do something sensible.
MMT = Modern Monetary Theory = Magic Money Tree = bullshit justifying useless thieving kleptocratic monetary drug addicts.
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