It's not absurd. And there's no automatic way to make money perfectly stable. That's not how money works.

And deflation is much worse. So we target a small 2% yearly inflation so that if it's 1% or 3% it's not a big deal. Whereas if you target 0% and wind up with -1%, you've got problems.

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jart a day ago | parent [-]

There's that word we again. So you're the crazy gringo who always picks my pocket?

Deflation is only bad for people who hold a lot of debt. For people who are cash positive, deflation means you're richer, you're being paid more to do the same job, etc. all while maintaining your freedom. Deflation actually being good is the central gamble behind bitcoin's design. If more people understood that then they'd probably stop using it for such frivolous purposes. Not everyone is privileged enough to even hold debt, so it's really an exclusionary system. And what do the people who the system trusts to have debt (e.g. private equity firms) do with it? They do leveraged buyouts to rip out the heart and soul of responsible American companies. The only thing inflation is good for is keeping folks running on the hamster wheel and bankrolling entitlements.

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woodruffw a day ago | parent | next [-]

> Not everyone is privileged enough to even hold debt, so it's really an exclusionary system

This seems backwards: I think the most salient debt in the average American consumer's life is student loans, car loans, credit card debts, mortgages, etc. These aren't hallmarks of privilege; not having any of them would be the hallmark.

(You might be right about corporate debt, I don't know. But I do think "deflation is only bad for people who hold a lot of debt" does a disservice in suggesting that that isn't a lot of ordinary people.)

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jart a day ago | parent | next [-]

So you think being a carless renter with no formal education or credit cards is privileged? I thought privileged people called them rubes.

	▲	woodruffw 19 hours ago \| parent [-]
		I’m pretty sure I’m saying the exact opposite of that. The point was that debt doesn’t map cleanly onto privilege at all. (Notably, the credit industry has moved onto schemes like BNPL that target individuals who would otherwise be protected from predatory credit by consumer protection laws. Those people are exploited, and unambiguously benefit - albeit not much - from an inflationary instead of deflationary environment.)

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necovek a day ago | parent | prev [-]

I think you missed their point: you are referring to the American middle class, but really, there are people much poorer who couldn't even go to university, or get out of an apartment rental in lousy neighbourhood, or own a crappy $500 car or...

	▲	woodruffw 19 hours ago \| parent [-]
		Those people frequently have even more exploitative forms of debt, like BNPL and payday schemes.

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dogmayor 20 hours ago | parent | prev [-]

Short-term deflation can be beneficial for some, but sustained deflation leads to a downward spiral that harms all. A lower cost of goods is great until it causes reduced aggregate investment and demand, which in turn can lead to wage reductions and layoffs. It's also harder to navigate out of a deflationary environment. Deflation isn't desirable in the long run.