“People Won’t Spend If Money Appreciates!”
The Fear: Economists screamed about “deflationary spirals” - that if money gained value, people would hoard it and the economy would collapse.
What Actually Happened:
• People still need food, shelter, entertainment, and experiences
• We just became more thoughtful consumers
• The economy didn’t collapse - it became more efficient
• Businesses had to genuinely compete on value instead of relying on monetary inflation to mask poor performance
Turns out: People don’t stop living their lives just because their money appreciates 3-5% annually. They just stop buying junk they don’t need.