Deflation is absolutely crippling because people are rewarded for being inactive and holding on to funds instead of using them to purchase someone else's goods or services, thereby slowing economic activity and turnover.
Example: You have $10000 and want to buy a car. Instead of spending it now on a PT Cruiser you just wait 5 years to purchase a much nicer car. Over your lifetime that means fewer purchases, less consumption, fewer jobs etc because people only spend the absolutely necessary amounts, waiting for their money to be worth more, a vicious cycle ensues.
I agree with you that a lot of consumption is superfluous and we are way too expansionary in our monetary policy right now but in the end I prefer to live in this environment while personally saving up instead of having everyone hoard cash, buy little and put me out of work...
Example: You have $10000 and want to buy a car. Instead of spending it now on a PT Cruiser you just wait 5 years to purchase a much nicer car. Over your lifetime that means fewer purchases, less consumption, fewer jobs etc because people only spend the absolutely necessary amounts, waiting for their money to be worth more, a vicious cycle ensues.
I agree with you that a lot of consumption is superfluous and we are way too expansionary in our monetary policy right now but in the end I prefer to live in this environment while personally saving up instead of having everyone hoard cash, buy little and put me out of work...