Deflation?

Deflation? We don't got to show you no stinking deflation.

The Amigo read that deflation would be bad.  It would cause prices to fall, wages to fall, and (gasp) corporate profits to fall.  My, my.

Let's see... if prices fall, well our purchasing power would increase.  It might let us live without incurring debt.  In constant dollars real wages have been falling for the last 8 years -- unless you're one of the Robber Barons feeding at the private trough at the pinnacle of the economy. The Friendly One merely notes that corporate profits have been growing and growing and growing for a long time. Maybe it's time to take a look at that model to see if it still makes sense.

Note that local economies may do okay during times of deflation.  People can trade work for goods or other work (consult your tax advisor for implications of bartering).

It is not clear that deflation is a disaster for any but those at the top of the pile, and we probably don't need to worry about them too much.  An adjustment, certainly.  Perhaps a move away from the consumer treadmill.  Perhaps a slower, simpler pace.  Maybe I'm wrong about this, but we would probably adjust.

Cooperate with your neighbors.  Plant a garden.  Tend it.  Share the food.  Share some meals.  What a concept.