It’s becoming really annoying.

  • partial_accumen@lemmy.world
    link
    fedilink
    arrow-up
    7
    ·
    2 months ago

    Short answer: Inflation encourages spending, because if you don’t spend it, it will be worth less in the days, weeks, years ahead as inflation eats away at the value. If your money is worth more by saving (deflation), then you wait to spend because the thing you want to buy will be cheaper tomorrow, and cheaper yet the next day. If people stopped spending the economy grinds to a halt. Everyone loses their jobs.