The biggest obstacle to a deflationary system, would be getting people to accept pay cuts instead of raises. And if you really think through the deflationary model, you’ll see that’s precisely what it implies. We are simply not wired that way.
Discussion
Wow that is what I never thought before. Imagine saying to your worker who’s doing all he can that you just need to cut him paycheck offf 🙃
But you would have to negotiate a paycut instead of getting a sneaky paycut anyway through inflation. This model is better in my opinion.
Like instead of negotiating a pay rise instantly you could negotiate that paycut will not happens right now, because of im skilled enough to move on these paycuts?
Wow 🧠