> You seem to think that predictable change is still pretty good, so why would it so problematic if change year over year was negative, but still predictable? Imagine all prices, therefore including wages, decreased on average by 0.2% from today until the year 2100 given a fixed money supply.
Yes predictable change is still pretty good but better predictable increase than predictable decrease. That's why there are target inflation rates of like 1 or 2%. Decreasing prices encourage people to defer spending until later and that leads to a recession and downward spiral and then it's not predictable anymore and the economy will tank in no time. That's why central banks are so worried about deflation. It's better to err a bit on the side of inflation.
> Plus I'd argue that for prices to fall is the natural dynamic in a flourishing economy: if we're getting better and better at producing things due to improvements in social organization and technology, why would things end up costing more?
If we're getting better and better then we should consume more or work less. You can only eat so many loaves of bread but your next vacation can be on Hawaii instead of the campground around the corner. Or the baker that has somehow managed to automate their bread making will still sell the same number of loaves at the same price but work 4 hours a day not 8.
deleted account
npub1g7…u8yd9
2026-05-07 12:03:41 UTC
in reply to nevent1q…9z2g
Author Public Key
npub1g7lqk25fl24xd0zh7hr8jgp5smdy2eszjh9nmv7z7w85h6xcs9hq4u8yd9Seen on
wss://nostr.momPublished at
2026-05-07 12:03:41 UTCEvent JSON
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"content": "\u003e You seem to think that predictable change is still pretty good, so why would it so problematic if change year over year was negative, but still predictable? Imagine all prices, therefore including wages, decreased on average by 0.2% from today until the year 2100 given a fixed money supply.\n\nYes predictable change is still pretty good but better predictable increase than predictable decrease. That's why there are target inflation rates of like 1 or 2%. Decreasing prices encourage people to defer spending until later and that leads to a recession and downward spiral and then it's not predictable anymore and the economy will tank in no time. That's why central banks are so worried about deflation. It's better to err a bit on the side of inflation.\n\n\u003e Plus I'd argue that for prices to fall is the natural dynamic in a flourishing economy: if we're getting better and better at producing things due to improvements in social organization and technology, why would things end up costing more?\n\nIf we're getting better and better then we should consume more or work less. You can only eat so many loaves of bread but your next vacation can be on Hawaii instead of the campground around the corner. Or the baker that has somehow managed to automate their bread making will still sell the same number of loaves at the same price but work 4 hours a day not 8.",
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