Loved this!

The fallacy that "everyone will just hoard their money and never buy anything" drives me nuts.

People don't need to be incentivized to spend their money by making it buy them less over time. They are plenty incentivized to buy things, because they WANT things. TVs get less expensive every year, but we still buy them rather than holding out for them to get cheaper, because we have a desire to own the new hotness.

It's the same reason why people will buy the next-gen game console immediately when it's released in November for the holiday shopping season, even though they know it will be cheaper after Christmas.

No, we NEED to be incentivized to save, because THAT is the behavior that doesn't come naturally to us. We want to consume, consume, consume, and must have some carrot dangled in front of us to lead us to behave differently.