How would we flourish?
I’ve read that there would be a deflationary spiral and recession if there was zero percent inflation. Is this true or just fear mongering?
Humanity would flourish.
2% is a lie based on one set of events with the bankers writing the history books and no other theories around why there might have been a depression.
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Discussion
There might be some pain along the way, but long term we would flourish.
The economic system we have built for ourselves is why it would bring pain. Our economy is based upon debt on top of debt on top of debt.
The economy can never pay down that debt, so we must borrow more to keep the system from collapsing, from the government currency becoming worthless.
If we had 0% inflation, there would be no incentive for people to keep borrowing since the secret about loans is that something worth $100 today is worth $150 next year, so borrowing $100 now and paying back $105 next year is a bargain rather than saving up and spending less than you earn.
This leads to a spiral, and a depression, but it isn't the 0% that caused it, and once the bandaid is ripped, human flourishing can begin on a better foundation.
What do you think the world would look like with no inflation?
No more credit cards, no more mortgages, houses would be affordable, investments and loans are fewer and more aggressively scrutinized, no interest on bank accounts and cash probably used more, a slow transfer of wealth from the rich to workers and productive people, massive money schemes like "buy borrow die" won't work anymore.
Btw, just my own opinions and beliefs.
Thanks for taking the time to chat with me on this!