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"Humans still need to eat and stay warm and fulfill their daily needs in a deflationary environment." EDIT: to add onto that answer, I'd say that just as there
by logicalmonster 5y ago
"Humans still need to eat and stay warm and fulfill their daily needs in a deflationary environment."
EDIT: to add onto that answer, I'd say that just as there are still savers in an inflationary environment, there will still be consumers in a deflationary environment. Incentives matter, but are not absolute drivers.
- verdverm 5y agoI'm not convinced this logic holds up. It is counter intuitive with economic theory and history
- logicalmonster 5y ago> "It is counter intuitive with economic theory" If you said "It is counter intuitive with Keynesian economic theory", I'd see your point a bit more. But different schools of thought like the Austrians view the importance of short-term consumption differently than what is a sort of textbook model of the world.