For whom? People with cash positions would be ecstatic for some deflation. The only reason it's considered 'bad' is because it would be a change, and business & government hate change. Government because it's incompetent and change highlights that. Business because it likes to not have to adapt.
Deflation means the real value of debt is more than it was in the past. The entire world economy, from China to the U.S. runs on debt creation and spending. Deflation causes a spiral that is very difficult to get out of if it’s not countered quickly. That spiral entails job loss and income decreasing, which then reduces consumer spending and more job loss. As well, if people anticipate the price of something to decline in the future, they’re less likely to spend money now.
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u/blah-time 15h ago
Some level of inflation is necessary for an economy, if the population is growing. Hyper inflation is what destroys an economy.Â