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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LeopoldBloom · M

Deflation would destroy the US economy. The advantage of inflation is that it makes the national debt less important, as dollars borrowed today are paid back in cheaper future dollars. Deflation would be the opposite and would require a larger portion of the budget to be devoted to interest on the debt.

jehova · 31-35, M

@LeopoldBloom this constant devaluation of wages. Effort in gets the same number of dollars out but with less buying power. Therefore inflation must have an equal opposite reaction or else the worker will never prosper. And budgets never balance.

LeopoldBloom · M

@jehova Wages did rise to keep up with inflation over the past several years. The reason people don't feel that they did is because the cost of basic commodities, like food and housing, went up more than the average inflation rate.

A prolonged period of deflation would lead to a drop in wages. As businesses made less money, they would have to cut wages to remain in operation.

jehova · 31-35, M

@LeopoldBloom businesses are simply hiring fewer ppl given that consumers buy less bc goods cost more. There is no simple solution; but has there ever been deflation? The claim it would have a given effect. Is purely speculation, i know of no real world data. Do you?

LeopoldBloom · M

@jehova Businesses are hiring fewer people because they can get by with fewer, also, unemployment is at a historic low and there just aren't enough workers available.

The last major deflationary period was in the early 1930s during the Great Depression.

Tastyfrzz · 61-69, M

@LeopoldBloom or...the debt would not be repaid.