The progressive issue many progressives don't seem to like

[Art_from_Ark]

50. Deflation has many facets

I have experienced deflation here in Japan. As a consumer it has been a boon for me since the prices of daily necessities have mostly been declining. However, deflation has also reduced my income, as well as the interest I was receiving for savings. But deflation has also reduced the interest rate on credit cards and home financing. So it has been a mixed bag.

If someone has a loan and there is deflation, then the loan can assumably be refinanced at a lower rate, and the prices of daily necessities should also take less of a bite out of disposable income. People on fixed incomes benefit from deflation since their fixed incomes have more buying power.

And inflation can be a killer if your income does not keep up with it. The CPI is a poor way to gauge inflation for persons on Social Security because it includes a lot of things that most retirees won't be buying, and gives less weight to the things that they tend to spend their money on, like health care, medicines, insurance, transportation, property taxes.