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Debt is the problem. The majority of Americans have a large amount of debt and if income goes down, which is what will happen in a deflationary spiral, how are
by cdash 10y ago
Debt is the problem. The majority of Americans have a large amount of debt and if income goes down, which is what will happen in a deflationary spiral, how are they going to afford to pay off their debt?
It also encourages hording of money and doing nothing with it as it becomes more valuable over time.
- humanrebar 10y agoDebt is a good point, but I'm not sure it's the government's job to pay off all debts. If the original contracts are untenable, that seems to be the source of that problem. As for hoarding, what's the argument? That people will make Scrooge McDuck bank vaults and take baths in their gold coins? People will still need to buy things eventually, right?