Deflation isn’t automatically a disaster - it really depends on the type.
People usually talk about deflation as something dangerous, but that’s mostly the kind that comes from recession and collapsing demand. That kind can cause real problems.
But there’s another type - deflation that comes from technological progress. When things get cheaper because we find smarter, faster, more efficient ways to produce them, that’s not economic collapse. That’s improvement.
Think about electronics, storage, computing - they’ve been getting better and cheaper for decades, and nobody wants to go backwards. That’s what healthy deflation looks like.
A system aligned with technological deflation could:
- make essential goods more affordable over time
- reward saving instead of constant spending
- encourage long-term thinking instead of short-term consumption
- grow through innovation rather than debt
Maybe the issue isn’t deflation itself.
Maybe it’s that our current monetary system isn’t built to handle progress - so instead of letting prices fall naturally, we inflate them on purpose.
Just something to think about.
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