[SnowProblem]

Humans are creativity machines. We are always expanding the amount of value there is in the world. The only way to have stable prices is to have a currency that inflates to match the amount of new stuff created.

But do we really want stable prices? Today you can buy a device a million times faster than 20 years ago for the same price. Imagine if everything were like that.

[ric2b]

> Today you can buy a device a million times faster than 20 years ago for the same price.

And as you can see that massive deflation completely destroyed the computing industry, as everyone sat around waiting for next year's device that was faster and better for a similar price.

Wait, that didn't happen? People still buy things when there is deflation? No, that can't be, how else can I justify the morals of my money printer?

[toyg]

You joke but this is an actual factor that hardware companies have to proactively manage. Apple, for example, grants free replacements to people who bought laptops in the last few months before an upgrade is announced. Precisely because, otherwise, people will sit on their hands waiting for the new model.

But really, you can just look at bitcoin itself: it keeps appreciating on the upward swings, but people continue to not use it for everyday transactions - it's purely a speculation target. That's not what a currency should be for.

[ric2b]

Oh, I agree that it has an effect, I just really doubt that we'll plunge into Great Depression part Deux if we have deflation for a few years.

Most people like buying things more than they like saving money.