It is a different kind of deflation. The great depression was trying to peg the fiat exchange rate to gold too high, after the capital had been spent. A gradual deflation of a money that can be trusted to hold its value over time drives lower time preference and better capital allocation.

Economic growth requires deferring consumption and allocating resources to development.

In a Bitcoin denominated economy, Bitcoin will only be hoarded until the price increases to the point that it's more probable that the price will decrease than increase, for example if 50% available coins are in circulation there is equal probability that the price of an asset will increase as it will decrease relative to Bitcoin. If this becomes skewed and 60% is taken out of circulation, the purchasing power of Bitcoin will increase, and the probably that the purchasing power will decrease is more likely than it increases further. This will cause it to balance at a point. However, the maths for this is quite simple, allowing anyone to make relatively accurate financial calculations.

With fiat the cost of money is dependent on the decision of central planners. This is far less predictable and at the whims of political influence. The financially savvy and especially politically connected can take advantage of this at the expense of the average person, who ends up trapped in a large mortgage for a house that has lost value as interest rates rise.

Everyone is talking about this, you probably just need to find the right account. There is a chapter on it in the Bitcoin Standard, most bitcoiners have read that as an introduction and most have gone on to read more sophisticated books like Human Action.