Why buy food if it’s going to be cheaper next year?
Think of all the people who are going to starve under a bitcoin standard if food keeps getting cheaper.
Discussion
Could’ve sworn it was an Onion article.
The washing machine thought experiment is the perfect example of why deflationary money is superior.
Why buy a washing machine needlessly? Under inflationary money, since everything always costs more through time, it actually makes sense to buy shit at anytime. And this behavior is encouraged by media and by massive credit markets.
Under deflationary money, it makes sense to save and buy things as needed. I’m not going without a washing machine if I don’t have one. I don’t care that it’ll be 1% less in a year.
Deflationary economics promotes capital accumulation and discourages consumerism. Which are both objectively positive outcomes. But people will still obviously buy what they need despite prices generally trending down. Fiat reasoning just doesn’t hold up to scrutiny.
Yep, reasoning doesn’t hold up. Those folks will figure it out eventually.