The economy doesn't grind to a halt. People don't horde cash. Consumption still occurs. Services are still performed.

Again, facts and history disagree with you. See the great depression and other economic downturns.

people will still lend out their money because they would like to have more than money than if they did nothing

Again, risk exists and is half of the risk-reward calculation. When your system entirely hinges on risk not existing... big sign that you're wrong lol.

So you made a bad investment in something that wasn't needed. Invest more wisely. This is basic economics.

It's a demonstration of the relationship between deflation and investment. And yes, it is basic economics. 😂

Invest more wisely

Invest with less risk? More risk? Or you're saying "just predict the future correctly" 🤔 I wonder if you'd learn something about this in an econ 101 class.

Deflation is the answer to the infinite growth required by capitalism. It should be embraced, not avoided.

Gee, you're literally dead wrong, and the experts agree with me. It's inflation, not deflation, that is required for growth. There's a reason the government targets a rate of 2% inflation per year.

Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.

You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.