Wages are already falling in real terms in many cases. There is a certain part of human psychology that locks onto numbers (I was paid x, therefore I should co

Wages are already falling in real terms in many cases. There is a certain part of human psychology that locks onto numbers (I was paid x, therefore I should continue to be paid x) which perhaps explains the aversion to deflation. I think part of the problem is that endless credit growth is what constitutes economic growth, instead of increasing productivity as it should be. So by preening and saying we cannot accept lower prices, we ignore the obvious long term benefits of stable and falling prices. There are winners and losers in deflation, just as there are winners and losers in inflation. It's better to take a neutral view of the distribution of benefits because someone wins or loses either way, and it helps to think more clearly when you realise everyone has a bias based on which camp they are in. What should matter for the sake of the debate is whether everyone would be better off overall.