

Infographic: What your lifestyle will cost in 2040  - jonxu
https://www.futureadvisor.com/401k/comics/cost-of-same-lifestyle-1982-2012-2040

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csense
I've never understood why inflation is considered "helpful" and deflation
"harmful." Inflation rewards leverage (going into debt since you repay it with
less valuable dollars), and punishes savers who live within their means.

But most economists say "deflation = bad, inflation = good (as long as it's
not high)".

Suppose I have a dollar and I have a choice of buying a hot dog either today
or 10 years from now. The hot dog today is already _intrinsically_ more
valuable to me, since in ten years I could be dead, or not like hot dogs
anymore, or be unable to eat them due to an intervening change in my health,
or be unable to find them since they went out of style and no one makes
them...I don't need the "encouragement" of inflation to force me to spend my
money; I'm _already_ punished for saving by forgoing consumption.

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rogerbinns
The effect is mainly on people. For example in a period of deflation your pay
should go down in order to remain at the same purchasing power. Can you
imagine how people behave when told they are really getting a pay increase
when their pay goes down by 2% and deflation is 4%? Inflation means
prices/wages automatically go down when no numerical change is made. This
keeps people happier.

Consequently inflation is preferable out of the two, but a small number close
to zero and stable over many years is the most preferable.

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pippy
Interesting, but I'd want to see the costs adjusted for inflation. Of course
inflation means things cost 'more', but we get paid more as well.

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jonxu
Would having an estimated salary next to the lifestyle cost bars for
comparison have helped?

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pippy
Yes. And it would be better than simply adjusting for inflation too.
Disposable income has an effect services, which leads more more interesting
interpretations of where things are going.

