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user-inactivated  ·  3417 days ago  ·  link  ·    ·  parent  ·  post: The Democratic Tea Party

Deflation is bad because it changes how the economy works in fundamental ways. Banks can't function well when deflation happens. People pull their money out of the banks. Loans are harder to come by. Businesses can't grow without access to capital. All the great services that banks bring us falter. Deflation is not a good thing.