Quote Originally Posted by Husar View Post
What exactly is the advantage of deflation over inflation?
You appear to be saying that if Johnny Doe saves 200 bucks in his trailer and they increase in value over time, it somehow advantages him compared to Sir John Doe who has stashed away 20 million in the cellar of his mansion that increase in value at the same percentage every year and also owns shares in several corporations that increase in value even more. Why?

Regarding the need for legislation, how does the market account for environmental problems for example? Most peoples' economic (and other) interests are short-term and do not take into account mid-term or long-term planning. We're not too different from Dodos who like the excitement of the jump but do not take into consideration the end result of the fall. Regulation is a means to force us onto a more sustainable path.
Over time economies fluctuate. Deflation is falling prices on goods and services brought on by over supply. Inflation means the medium of exchange is lessening in value and takes more to buy the same item. If you had money put away it’s value steady decreases in buying power and that discourages savings.

If Johnny Doe has his savings in a box or even a bank the value of it falls over time because of central banks management of the money supply. Sir John on the other hand may own the bank or get a loan from his bank (which created the money by lending it) His money is at full value when he gets it but worth less as he pays it back. If he has other investments, that cushions his wealth or makes him more. Johnny on the other hand has to spend more for what he needs while his money has lost in value.

As to regulation: If it is a good idea, why must people be forced into it? Wouldn’t they naturally take it upon themselves to do like wise and protect what they have? Farmers don’t put salt on their fields to make them unusable. If people can agree that something needs preserved or looked after can they not care for it? Does it have to be government which intervenes and prohibits anyone from doing anything?