Topic: Isn't deflation a bad thing? - page 3. (Read 2093 times)
Surely you will have to buy at some point otherwise you won't have food, clothing computers etc. So people will buy but only what they need. That sounds good to me. I hate watching the news and every time the economy goes up (=environmental destruction) they bill that as a good thing. But does it mean poverty to have deflation in this way?
I am not interested in living in a cavern and of course being a software engineer I will still be making the occasional purchase of computer hardware and using the internet.
Slowing down our production and consumption != going back to the stone age (but it could help to save many species on our planet including our own).
Slowing down our production and consumption != going back to the stone age (but it could help to save many species on our planet including our own).
I don't think that inflation and saving the planet are antagonist.
You can recycle, save money, reduce gas emissions of greenhouses. You just need to consume better, not less.
Even wikipedia, which is objective, describes deflation as a bad thing (according to most economists).
You might like or want to live in a cavern like they did xxxxx years ago, without electricity, without phones, computer and modern comfort. But I don't. No matter what I waste.
I am not interested in living in a cavern and of course being a software engineer I will still be making the occasional purchase of computer hardware and using the internet.
Slowing down our production and consumption != going back to the stone age (but it could help to save many species on our planet including our own).
Really - think about it - we have global warming, over population and are polluting the planet to death with our manufacturing.
I think if people only spent on what they really needed (such as food, clothing and housing) then we'd all be better off.
I think if people only spent on what they really needed (such as food, clothing and housing) then we'd all be better off.
For a couple of years yes it might be good... But not as a permanent thing.
You might like or want to live in a cavern like they did xxxxx years ago, without electricity, without phones, computer and modern comfort. But I don't. No matter what I waste.
But still, deflation is not good if it is permanent.
Really - think about it - we have global warming, over population and are polluting the planet to death with our manufacturing (and all at an ever increasing rate since the industrial revolution).
I think if people only spent on what they really needed (such as food, clothing and housing) then we'd all be better off.
If $0.01 USD is enough to buy a Ferrari, then you will have trouble buying a stick of chewing gum for example.
Bitcoin on the other hand is divisible to a very low number, so you can buy the stick of chewing gum for 0.00000001 easily.
But still, deflation is not good if it is permanent.
Let's assume you have 1 btc today. If you know for sure that the value of btc will increase, you will not spend it.
So basically, you won't go to the cinema today because you know that in 1 year you can buy 2 tickets for the cinema with the same amount of money....
Inflation is useful for consumers because they know that the value of money will decrease, so they better spend it now. Basically they will go to the restaurant, cinema, holidays, buy TV, computer and so on. With deflation they will just keep their money for themselves and stop investing.
Funny that computers and smart phones get cheaper and cheaper every year - but somehow the companies making them are not already out of business (i.e. if your purchasing decision was purely based upon getting the cheapest price you'd never by a computer or a smart phone as they will always be cheaper next year).
Another important aspect is that the vast majority of people are poor savers at best - they are more interested in showing off their latest iThingy than "hoarding" their earnings.
Another important aspect is that the vast majority of people are poor savers at best - they are more interested in showing off their latest iThingy than "hoarding" their earnings.
If $0.01 USD is enough to buy a Ferrari, then you will have trouble buying a stick of chewing gum for example.
Bitcoin on the other hand is divisible to a very low number, so you can buy the stick of chewing gum for 0.00000001 easily.
Someone told me recently that deflation is actually a bad thing and if anything is as bad as inflation as people just wait until tomorrow to buy things as they will always be cheaper. So how is Bitcoin immune to this problem when it is a deflationary currency? I probably have my concepts mixed up here. Here is some more information:
http://www.bankrate.com/finance/investing/afraid-of-deflation-here-s-what-to-do-1.aspx
http://www.bankrate.com/finance/investing/afraid-of-deflation-here-s-what-to-do-1.aspx
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