Re: Deflation You're thinking too small. Think of holders of vast wealth, who in an inflationary system, are forced to invest their money and earn a significan

Re: Deflation You're thinking too small. Think of holders of vast wealth, who in an inflationary system, are forced to invest their money and earn a significant return in order simply to maintain the value of their wealth. In a deflationary system, they are no longer at risk of losing wealth by letting their money sit in a bank, and so the least risky course of action for them is to simply hold on to their money. This means that the markets for things like angel investing and venture capital, among others, dry up as holders of significant wealth are no longer incentivized to invest their money. An inflationary currency is what gives us our social mobility. Without it, holders of wealth don't make risky investments, meaning socially mobile entrepreneurs don't get funding to allow them to join higher social classes, wealthy investors no longer lose their shirts and move down the social ladder, and the society at large becomes entrenched in its current economic makeup. I would not like to live in a society with deflationary monetary policy; money is meant to be spent and made to work for you, not hoarded.