Re:U.S. Population Growth Has Been Driven Exclusively by Min...
by vkou on Sunday July 05, 2020 @04:38AM
(#23737377)
You may not be so rational, but investors will be.
If deflation were 3% a year, nobody would invest into anything short of a golden goose. Why risk your money, when you can sit around, do nothing, and have it earn value for you, with zero risk?
In fact, if we were looking at a long-term deflation of 3%/year, I'd stop working, sell all of my investments, stick my money in a mattress, and retire tomorrow.
You tell me whether or not that is healthy for the economy.
If deflation were 3% a year, nobody would invest into anything short of a golden goose. Why risk your money, when you can sit around, do nothing, and have it earn value for you, with zero risk?
In fact, if we were looking at a long-term deflation of 3%/year, I'd stop working, sell all of my investments, stick my money in a mattress, and retire tomorrow.
You tell me whether or not that is healthy for the economy.