Cris asked in Social ScienceEconomics · 1 month ago

Why is inflation a good thing and deflation of the US Dollar a bad thing?

Don't you get tired of paying $5 a gallon for gas or paying $20 for a meal?

or even $1 million for just an ordinary house?

Inflation to me is bad and it needs to be controlled. A strong dollar is good.

4 Answers

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  • Ray
    Lv 6
    1 month ago
    Favourite answer

    Slight predictable inflation is good, it maintains consumer confidence is predictability of the currency, and over time the currency looses value so most people will invest, they won't just sit on it. 

     

    Deflation in the past caused massive economic collapses, reason being: if money gains value, people will sit on it and not spend it. Why spend your money today if tomorrow it will buy you more? The issue with this is that when people don't spend, businesses don't sell, mass layoffs follow, and the economy collapses. 

    We used to have breadlines back in the day when this happened. 

    It is important to note: inflation and deflation happen naturally, the value of nothing remains stagnant because of supply-demand always changing. 

  • Oiy
    Lv 6
    1 month ago

    Mild inflation is a good thing because I will get a decent job and bonus. The dollar will also get stronger which will make import goods and foreign travel cheaper. Deflation is bad because my confidence will be down. And that makes my life unlucky. I don‘t get tired if my income rises faster than the prices.

  • Zirp
    Lv 7
    1 month ago

    they aren't. Inflation serves to punish people who save money, and makes it "easier" to pay off debt.

    Deflation is called bad because mammon-preachers ("economists") claim it would make people postpone purchases.

  • JuanB
    Lv 7
    1 month ago

    You are over halfway to the truth about it all.  Reality is all change has winners and losers.  Deflation and Inflation has its winners and losers.  The bigger the change, the more it takes to get use to it (for both winners and losers).  Actually the News likes to report bad news to get ratings, and tends to dwell on the negative factors.  And if not, cater to their niche audience.

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