Wages are stickier than prices. Workers’ purchasing power rises, while “capitalists” lose purchasing power. It reverses an unhealthy wealth disparity that almost always precedes deflationary periods — there is no more money to be pulled from the bottom.
Deflation is healthy and necessary. It is what restores equilibrium and corrects unhealthy imbalances.
Yes, deflationary collapses can be hard; jobs are lost, and people see the value of their assets fall, but there is always a floor in a deflationary collapse. There is no ceiling in an inflationary collapse, and inflation causes far, far more damage over the long run, IMHO.
