I am still trying to figure out why deflation is so bad. My understanding is that the late 1800s were deflationary and times were considered very good. The Depression was caused by huge borrowing and leverage during the 1920s, which caused problems naturally when unwound. My biggest problem with even a 2% annual inflation is that it literally transfers wealth from the middle class and poor to the rich. If you own assets like stocks and real estate, you literally make money for nothing. The middle class and poor, who don't have wealth, lose money every year for no reason simply bc now they have to pay more for daily living expenses. Why is it fair to transfer that wealth to the rich? No one has ever provided a satisfactory answer to that basic question. It seems a slightly deflationary environment would be best for society as a whole. I don't buy the idea that people will hoard money bc the price will be lower. So you're not going to buy a $1000 tv today bc you can buy it for $990 next year? That would mean that no one was buying computers and flat screen tvs as the prices declined in value.
You are right, it is not fair to transfer wealth to the rich. Deflation is the cure to that outcome.
The problem is that central banks and banks in general have profited from the current inflationary system. They keep everyday inflation at around 2% so the masses don't revolt but they inflate asset prices by as much as possible. Last year share prices in the US was inflated up by over 20%!
This widens the gap between the rich and poor, PERMANENTLY. The gini coefficient for inflationary monetary systems is rising all the time. The banking sector is growing as a percentage of GDP and has done so for the last two decades.
Gen Ys are getting completely screwed. This is why Bitcoin is such a great monetary system if you are young and don't own significant assets in the fiat money system. With Bitcoin, your spending power cannot be inflated away.
Although fiat money systems are less volatile over short periods, they produce massive crashes after a few years due to credit imbalances. That is no way to run stable economies. Avoiding short term economic pain by increasing debt is tremendously short sighted and counterproductive in the long run.
I choose to save in Bitcoin because central banks and fiat money cannot be trusted. Every such system in history has eventually collapsed. I much prefer a decentralised monetary system with predictable outcomes.