“People Won’t Spend If Money Appreciates!”

The Fear: Economists screamed about “deflationary spirals” - that if money gained value, people would hoard it and the economy would collapse.

What Actually Happened:

• People still need food, shelter, entertainment, and experiences

• We just became more thoughtful consumers

• The economy didn’t collapse - it became more efficient

• Businesses had to genuinely compete on value instead of relying on monetary inflation to mask poor performance

Turns out: People don’t stop living their lives just because their money appreciates 3-5% annually. They just stop buying junk they don’t need.