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Yes, most economists believe that inflation is better than deflation, although it is important to note that both inflation and deflation can have negative effects on an economy if they are too high or too low.
The main reason why inflation is generally seen as better than deflation is that it can promote economic growth and stability. When prices are rising, businesses and consumers have an incentive to spend money now rather than later, which can stimulate demand and economic activity. Inflation can also help to reduce the real value of debt over time, which can make it easier for individuals and businesses to repay their loans.
On the other hand, deflation can have the opposite effect, discouraging spending and economic activity as consumers and businesses hold off on purchases in anticipation of even lower prices in the future. Deflation can also increase the real value of debt, making it more difficult for individuals and businesses to repay their loans.
However, it is important to note that both inflation and deflation can be harmful if they are too high or too low. High inflation can erode the purchasing power of individuals and lead to hyperinflation, while deflation can lead to a decrease in economic activity and even a recession.
Therefore, the ideal situation is typically moderate and stable inflation, which can promote economic growth while avoiding the negative effects of both inflation and deflation. Central banks often use monetary policy tools, such as adjusting interest rates or controlling the money supply, to try to achieve this goal.
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It only takes a very superficial analysis to understand that inflation decreases everyone's wealth. Inflation simply means a decrease in purchasing power of the currency: whatever amount of currency you owned a year ago today has a smaller value, causing you a loss of wealth. If a year ago loaf of bread costed $1 and now it costs $2, then your saved currency allows you to buy half as much bresd as before. Sure, your income may increase along with the salary - but the wealth you have kept decreases regardless.
Some economists see this as a positive effect: it encourages spending, they say, energizing the economy and incentivizing production. But that is the broken window fallacy: if someone did not want to spend their money in the absence if this incentive, then they wanted to do something else that was expected to provide them with a higher gain - and now they have been deprived of this option and forced to resort to the second, third or whichever best option. And the idea that in the long run they are somehow better off by not choosing what they see as the best option for themselves is shaky at best, and highly authoritarian in addition.
The question then becomes: if across the world people are becoming better and better off, if the continuous surplus of production combined with the technological progress causes an exponential growth of wealth, then how come there is inflation rather than deflation? How come the same loaf of bread costs more today than it did 5 years ago, despite its demand dropping and the costs of its production decreasing?
To answer this question, we need only to look at the monetary policy of virtually any government on the globe. Governments continuously print out banknotes, openly stealing everyone's wealth by devaluing the currency and putting the gap value into their pockets or, at best, inefficient governmental endeavors. The fact that modern economies are based around currencies printed by central banks, with murderous regulations of alternative (private) currencies, is a major problem making consistent creation of wealth impossible.
Deflation is a natural state of things: as we become more efficient economically across the board, each individual unchanged item must drop on price over time. The reason we see not 1 cent loafs of bread in grocery stores, but $5 loafs of bread, is that the unit of measure of value is tampered with by economical tyrants. The "stolen value" socialists talk about so much does not come from some mythical gap between the value of one's labor and their salary, but from a very real gap between the value of the product produced and the value of the currency supposed to measure it. And as long as central banks dominate the currency market, the growth of real wealth in the world will be significally impaired.
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To answer this question, we need only to look at the monetary policy of virtually any government on the globe. Governments continuously print out banknotes, openly stealing everyone's wealth by devaluing the currency and putting the gap value into their pockets or, at best, inefficient governmental endeavors. The fact that modern economies are based around currencies printed by central banks, with murderous regulations of alternative (private) currencies, is a major problem making consistent creation of wealth impossible.
The issue is that all notes are not currency as fact they are a registered receipt on organized debt, and this is there power used or ignored. This economic argument is a fallacy as credit is debt, and very few forms of token act as a receipt on organized debt leave large holes in the idea of contained value. Printing more money as a Note does not lower the value unless the connection to the dept its repentance has questions waiting legal action. The fact here is some nations hold an axiom which gives them advantages over large volumes of debt and less advantage economically over larger volumes of debt.
Also, price increases are not a sign of inflation they can simple be a sign of inflation. Even more so as occupants in a nation with a poor axiom are driven by taxation to attempt to pay off their nations debt even when like in America the cost of the debt is stacked against them in ways outside government regulation.
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Yes, most economists believe that inflation is better than deflation, although it is important to note that both inflation and deflation can have negative effects on an economy if they are too high or too low.
This is an interesting debate as America has been all about deflation as a means of governing. One which may not be a whole truth but explains a basic principle to establish representation in law by the location of areas of taxation. Town, City, County, State, and Federal jurisdictions. It can also be argued that America's economic issue is about the speed of corporations inside the economy and not the overall size of the economy itself. (Question)
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Imagine working your butt off to make at least a few hundred bucks(or whatever currency you use) but suddenly prices skyrocket and now your money is worthless. Now compare that to if instead of prices skyrocketing, they plummet - now your money is more valuable and you can spend it on more stuff than before with the same money!
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