The idea that deflation is bad is pure keynesian propaganda spread by the central banks and establishment economists. Deflation is the natural and beneficial condition that occurs when the quantity of goods in the economy increases. The same amount of money is chasing around more goods, leading to an increase in the buying power of the dollar. In a free market, where money is probably going to be gold based and deflation is the norm, you don't have to venture out into the risky stock/bond market to save for retirement. All you do is hold cash and your buying power appreciates as the economy grow and is able to produce more goods. Falling prices are the wages of a prosperous, free economy.
The idea that individuals "hording" money or hiding it in their mattress is bad is also nonsense. If you take money out of the money supply and bury it in the ground it is a deflationary act. Everyone elses buying power increases because of the decrease in the money supply. We should have government posters encouraging people to lock their money away in the mattress.
The federal reserve is a government backed institution with a monopoly on the printing of money. The legal tender laws restrict the species that are valid for use in contracts. I cannot write a contract to buy a car and pay in gold, only federal reserve notes. The purpose of the federal reserve is to provide as a lender of last resort so banks can print money, causing inflation and decreasing the buying power of the dollar.
Austrian economics describes reality. Keynesian economics is fantasy and is the basis of the welfare/warfare state and out of control government spending that is occuring today. Want to know why the US has gone to war so much as of late without raising taxes? It is because of the ability of the government to run unlimited deficits because of the ability to print money.
The Ludwig von Mises institute has some very good articles
https://mises.org/daily/1241
The idea that individuals "hording" money or hiding it in their mattress is bad is also nonsense. If you take money out of the money supply and bury it in the ground it is a deflationary act. Everyone elses buying power increases because of the decrease in the money supply. We should have government posters encouraging people to lock their money away in the mattress.
The federal reserve is a government backed institution with a monopoly on the printing of money. The legal tender laws restrict the species that are valid for use in contracts. I cannot write a contract to buy a car and pay in gold, only federal reserve notes. The purpose of the federal reserve is to provide as a lender of last resort so banks can print money, causing inflation and decreasing the buying power of the dollar.
Austrian economics describes reality. Keynesian economics is fantasy and is the basis of the welfare/warfare state and out of control government spending that is occuring today. Want to know why the US has gone to war so much as of late without raising taxes? It is because of the ability of the government to run unlimited deficits because of the ability to print money.
The Ludwig von Mises institute has some very good articles
https://mises.org/daily/1241