"A deflationary environment still rewards workers, because the dollars are worth more, but doesn't punish you for not constantly struggling." It's true you get

"A deflationary environment still rewards workers, because the dollars are worth more, but doesn't punish you for not constantly struggling." It's true you get a small raise each year. But from the business owner's perspective, their costs go up each year. The salary stays the same number but you're paying them more. As you can charge less for your products (deflation means prices fall), you get less money to pay your employee with. So how do you stay in business? And your employees find it hard to leave because other companies can't match their salary. So it hurts the flexibility of labor to move to more suitable jobs. The result is a stifling and suffocating business environment. Many companies go out of business during deflation.