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> Deflation is natural due to increasing uses of new technology which make products and services cheaper and better. This is not deflation. Prices go up and do
by qeternity 5y ago
> Deflation is natural due to increasing uses of new technology which make products and services cheaper and better.
This is not deflation. Prices go up and down. That alone does not imply inflation/deflation.
> Deflation, purchasing power increase, is good for savers.
The best thing for savers is real returns. History has shown that periods of broad GDP growth with moderate inflation produce the greatest real returns.
My comment has nothing to do with me cheering on inflation. I am hearing a lot about Weimar inflation recently, and I’m not sure most people realize that was born from a horrendous deflationary period which resulted in two world wars (as another commenter rightly points out).
- landemva 5y ago' The best thing for savers is real returns. ' Investors want returns. In inflationary environments, savers are compelled to become speculators (or investors) to attempt to protect purchasing power. GDP includes government spending, which has been increasing. How is broad growth in government spending good for savers? I'm not talking about hyperinflation in USA, though it is convenient for your argument to use an extreme example of war reparations.