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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?


To: Wayners who wrote (11771)4/23/2009 4:13:44 PM
From: DuckTapeSunroof  Read Replies (1) | Respond to of 103300
 
Re: "I would prefer deflation, as inflation punishes those that actually saved their money...."

You are exactly correct that inflation punishes SAVERS, while deflation punishes SPENDERS.

Unfortunately, investment is a form of 'spending' (&, also, businesses need customers to spend or else there is no business...) which is why --- once a deflationary cycle has taken hold --- it tends to reinforce itself and exerts a maximal negative impact upon economic growth and consumption and investment.



To: Wayners who wrote (11771)4/23/2009 4:20:38 PM
From: HPilot  Respond to of 103300
 
Inflation led to Nazi germany, remember those old photos of wheelbarrows of German Marks in the early 20's? Deflation helps to correct depression. Elite economists consider it bad because its bad for banking, but it's usually good for the common man.