Dismantling IDIOTIC Deflation Ideas

In this episode, I go off on a rant about deflation and inflation. There are a lot of myths about monetary expansion and contraction vs prices increasing and decreasing. Keynesians and modern economists have no historical data to back up their opinions. The entire 19th century could not have happened if the current views of deflation were correct. Deflation is good. Inflation is theft. Deflation cures recessions and depressions. If deflation is coming, we are lucky. If stable prices are coming, that is theft. If inflation is coming, the fiat currency system will collapse.

#deflation #inflation #economics

Sources Used:

I am not a CPA, attorney, or licensed financial advisor and the information in these videos shall not be construed as tax, legal, or financial advice from a qualified perspective. Linked items may create a financial benefit for Heresy Financial.

[christopherking]

Thank god someone on youtube reads financial history and is also sane.

[savoirfaire]

Deflation is the healthy norm of an economy that's not being manipulated! Wow, you're blowing my mind. It's so obvious but I didn't see it until you pointed it out.

[Laotzu.Goldbug]

10:47 - this is a huge point right here. They hate deflation because it is anti-consumerist. It encourages naturally - by no government coercion - frugality. Saving your money is always better so if you want to buy something you better make sure you need it. Frivolous spending is highly disincentivized.

And as we know, out-of-control consumerism, marketing, and the constant fear that you are being left behind in the status race is how they control vast portions of the population.

[LiLFOX_Flakisimo]

I am taking an economics class in junior college and its saying deflation is bad. People are brainwashed severely, for decades we've been told so many things that were just wrong. From human migrations to this economics, thanks for your input.

[johns]

Deflation is good for savers and bad for debtors. The establishment is completely dependent on debt so of course their propaganda demonizes deflation.

[terrytyang]

You're trying to imagine what deflation will do, only through the lens of individual's experience, without thinking through about the knockon effects that would follow. In a deflationary environment, not only ordinary consumers will cut back spending, producers would also be motivated to delay producing because of a double whammy: on one hand, raw material would become cheaper the longer they wait, while on the other hand, any product could not be sold immediately, would decrease in value much faster than before, so why risk it? and so on. You get the idea. Basically, every player in the economy will be incentivised to conduct less purchases in the meantime, with the expectation the same amount of money will have greater purchasing power tomorrow. I don't think you need me to tell you what this situation would lead to. Of course, this process can't last forever, but how long is too long? Some purchases (e.g. food and shelter comes to mind) simply can't be delayed for too long, and unemployment would likely get you before the economy rebounds.

[HKHasty]

The underlying assumption driving inflationary policy is that ppl will always want to spend beyond their means by borrowing. In other words, greed and FOMO lead us to where we are and there’s no turning back. I agree with all you say in principle. An economy of savers is better than one of borrowers. In reality, advanced societies always trend toward excess.

[brukernavn]

Switzerland have experienced economic growth, moderate wage growth and mild deflation since 2010.
Also more and more mainstream economists are actually looking at this inflation/deflation subject from a new perspective.

[paulmaier]

DEFLATION rewards savers and PUNISHES borrowers
INFLATION rewards borrowers and PUNISHES savers

[lazybearish]

Devastatingly on point! Sooner or later, necessary pain must come before true gain. Keeping bubbles going will not avert the day of reckoning, only delay it and make it worse.

[gb-dtvk]

Deflation would be a nightmare for the people the Fed has chosen to carry the economy (who are borrowers). The government who benefits from inflation will never allow deflation.

[naheenzaman]

So basically, deflation just screws up the rich people gaming the economy with debt.

[unequivocallybased]

This must be one of the greatest psyops in human history. People have been conditioned to expect that prices just increase each year with the cost of living and basic goods like food and that money becomes worth less and less, and thats just the way it is.
Its bizarre.
There will be hell to pay when this whole system finally starts to decline and people cant afford to live en mass.

[grahamwhite]

Joe I'm showing this one to everyone I know that doesn't want to hear this when I'm saying it. I share the same passionate discord as you when I promote our societal need for deflation to my friends. I'm 30 and my future is bleak if it never happens

[jon]

Hey this is a great piece. And I love your break down of how a society with a fixed amount of income will naturally go through periods of deflation. Then how deflation ultimately will lead to new growth and allow humans to focus on make new efficiencies. Absolutely correct.

However I do think you underestimate the negative affects of deflation in the medium term. If the usa went through a few year period of deflation without government intervention. there would be record levels of corporate bankruptcies who are unable to service debt With the shrinking prices.

This would ultimately take years to recover from and would take time to recover from. A lot longer than 18 months. Most people can’t think ahead, let alone 5 years ahead.

[Agent_Leelan]

Very good video, now in 2022 we are finally seeing how bad inflation really is

[ADarkType]

Thank you! Someone sane! I've never heard a truly convincing argument for this artificial inflation. "Well your house will gain value!" Guess what, not only do I not care, now I cant afford one in the first place! I want to live in a home not sell it for some piddly profit and be homeless. Best case scenario with that I spend most of what I earned on a new home

[priestesslucy]

Doesn't it basically boil down to taxes?

Without inflation people can actually build a stable life and stop chasing wages and stop feeding the government.

It boils down to inflation keeping people in their battery cell so the matrix gets their energy

[drewstead]

I'm so glad you started this video with exactly what I've been thinking lately. Unfortunately it looks like the deflation that just started is a temporary situation. Avg wages from 1930-1935 went from about $4800 to $480, and then by 1940 was $1, 380. Due to min wage the average wage can only go down by a factor of 2.1-4.4 depending on the state. This equates to 52-77% drop. Many YouTubers are already predicting 30-50% drop in prices. Real estate is already down 10% from the peak, Amazon grocery lowering prices 30%, and Walmart and Target rolling back prices.

[demilung]

"Benefits poor not rich" bro thinks we live in the opposite day every day.
Without getting bogged down in personal speculative details, if you're poor and live paycheck to paycheck the prices of everything going down will include your labor. Not much will change here.
If you're rich and have a nice savings account or stash, then you will reap the most benefits of those savings growing value.
It's the most basic thing.