[dmichulke]

Oh and regarding deflation (I know, you didn't ask for this):

If prices deflate 5%, a worker can buy 5% more of his salary, making him effectively richer (ceteris paribus). There is no need for savings, future income is sufficient.

Secondary effects like unemployment are likely to occur but still you'd need to show that 5% of deflation cause 5% workers dismissed so that the net effect is the same. If only 3% of the workforce are dismissed, the poorer got effectively richer.

Tech products have been deflating constantly, yet no one stopped buying them (to the contrary, they got cheap enough so that a lot of people were able to buy them, think smartphones).

So you might not agree with me on a general rule but bear in mind deflation has positive effects. All innovation causes deflation.