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[–] 1 point 1 year ago* (7 children)

Deflation increases the value of money vs. goods and services. As a consequence, deflation concentrates economic power in the hands of people who already have money.

If you have debt, deflation increases the value of your debt making it harder to pay off.

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  • [–] 5 points 1 year ago (2 children)

    If deflation was persistent, couldn't debt have a very low or even negative interest rate?

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  • [–] 4 points 1 year ago (1 child)

    Inflation makes goods aka stocks increase value, which makes rich fucks that live on loans be able to then ask another loan for a bigger amount to pay off the loan from before just because their assets passively rose in value.

    It's the scam by which the ultra rich live by doing absolutely nothing while the rest of us that are saving for a house or whatever see our savings year by year diminished.

    Yeah fuck that.

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  • [–] 2 points 1 year ago

    The issue is that they even get loans when they have no real collateral to give.

    Most people also have savings or a pension fund which is indirectly put into the stock market, that's how you get interest etc.

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