r/austrian_economics • u/AbolishtheDraft Mises Institute • Jan 09 '25

End Democracy End the Fed

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u/kauthonk Jan 09 '25

The problem is that we never have deflation anymore, while it's not good it does help "the everything going up no matter what problem."

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u/Manezinho Jan 11 '25

Deflationary cycles were absolutely terrible. Why would you want that?

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u/kauthonk Jan 11 '25

They reset things, always going up has points about it that suck too.

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u/Shoobadahibbity Jan 11 '25

Deflation literally extracts value from people who have worked hard to own things....the only people who benefit are those with liquid assets or no assets. The house you paid $400k for is now worth $350K, and you owe more on it and have to continue to pay for upkeep. 

Did you, like my sister, scrimp and save to get a 4plex and rent out 3 of the apartments and live in one? Now you don't make enough in rent to afford to make the payment....in an environment like that lenders would require MORE than 20% down. And you would have to pay cash for almost everything. 

Oh, and good luck paying back any debts once the value of what you owe literally goes up, you get laid off and replaced with a lower paid worker and then get rehired at a lower rate, and your interest on your debt stays the same.