If inflation is "bad" is deflation "good"?

Everyone is always complaining the dollar is worth less. Yet if the dollar increased in value would that be good? Weve never experienced deflation but its considered dangerous. How would we know?!
Please advise.

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Elessar · 31-35, M

No, deflation means that companies are forced to cut their prices of their products because they can't sell, and with that come with mass layoffs (long before lowering the prices), so your purchase power is f*cked regardless because even if things cost less you don't have an income any longer

Just another wonder of hyper-capitalism

jehova · 31-35, M

@Elessar itll be interesting if, for example,a gold standard were reestablished and the value of the dollar increased might debt be proportionately adjusted?

LeopoldBloom · M

@jehova The gold standard is an impossibility as there isn’t enough gold to back the economy today. Also, tying the value of currency to a commodity leads to severe boom and bust cycles, which is why we got off the gold standard in the first place.

jehova · 31-35, M

@LeopoldBloom ok its only one example. Yet weve traded boom bust for ever decreasing value. That perpetual "bust cycle" with insurance "backup" must have a limit. Or what?

LeopoldBloom · M

@jehova That's a good question. The stock market is going bonkers and may not be sustainable. Over 30 years ago, Ross Perot talked about too many dollars chasing too few securities.

I'm planning on moving my retirement out of the stock market sometime before Trump's inauguration, as I'm expecting a significant correction after that.

jehova · 31-35, M

@Elessar you are referring to inventory liquidation and discounting. Deflation would be lowered prices bc currency is worth more.

Elessar · 31-35, M

@jehova Hmm no

https://www.investopedia.com/articles/investing/051315/what-deflation-and-how-do-central-banks-fight-it.asp

jehova · 31-35, M

@Elessar seems im envisioning disinflation thanks.