Like why can’t a head of lettuce go back to costing 1 cent?
Or, maybe more realistically, after dealing with crazy inflation for the last couple of years, why can’t prices just go back to pre-pandemic, pre-inflation levels, once the factors that *caused* the inflation in the first place have been resolved?
In: 5
You never want deflation (negative inflation). High inflation is bad, *negative* inflation (i.e. deflation) is much worse.
Inflation is basically money becoming worth less over time, so deflation is the opposite. Money becomes more valuable the longer you sit on it. Logical conclusion, don’t buy stuff now, buy it later because your money will be worth more.
Nobody buys shit. Nobody wants to invest in businesses, or take a financial risk (because debt also gets more “valueable” over time). Deflation would wreak havoc, even compared to high inflation.
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