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0 pointswarkdarrior4y ago0 comments

> My money SHOULD be worth more tomorrow than it is today.

It is very simple why this is not a good policy.

Let's say you are a software engineer working on some software product/service. You are working hard on that software, adding features, fixing issues, maintaining it, etc. The buyer pays you $100 today for that software.

Tomorrow you release a new version, with lots of upgrades and new capabilities. The buyer for this software says "my money should be worth more tomorrow than it is today" so they offer only $80 for the new version. Boom -- your work is worth less every day!

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RhodoGSA4y ago

Very good point and I think your right. Maybe deflationary pressures on the economy would only lead to more centralization of assets than we already have today. One pedantic point to make though; Technically, that $80 is worth more today so it's not like "Your work is worth less every day". it's the same exact thing in your example.

StandardFuture4y ago

> One pedantic point

Your point is not pedantic at all and in fact completely negates the other commenters counterpoint made to your initial argument.

The buying power of the entity you are exchanging in has changed -- for everyone. This absolutely does not diminish your work. It is literally equivalent to being paid in many more bitcoin in 2012 versus today.

I am sure there are valid critiques of allowing deflation. But, as of yet a solid one has not been provided in this thread.

It would be interesting to see if anyone can offer other sources or arguments against this pro-savings, deflation-allowable, economy.

Allowing natural volatility into the value of any asset that is traded, including the USD, likely resolves to a more natural equilibrium in the economy, no?

pram4y ago

Deflation causes many problems. For starters at a macroeconomic level it reduces money velocity and investment. If people will make a better return just holding onto their money, then they will be more averse to spending it obviously.

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dgs_sgd4y ago

This assumes the new version of the software has no added value from adding new features and fixing bugs, etc.

Even with your assumption suppose you accept their offer. The $80 received should in turn be able to purchase something that was worth $100 dollars yesterday. The nominal value may have gone down but the quantity of goods and services you can buy with it is the same.

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