Economics is a highly politicized science, and to be prominent in the US controlled west, must advocate for oligarchist supremacism. Just a few missing points in video why deflation is by far the best problem to have, and in fact great for society:
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lowers interest rates which encourages more capital projects which boosts both employees and productivity, with lower total capital costs, and then lower “hurdle margins” to justify investments.
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greater consumer value means more production volume/abundance. More total products in all categories made, and better export competitiveness. Even when deflation is imported, it is also abundance that improves society, including adding manufacturing value to imports or concentrating on specialized value creation.
Deflation of prices might be good but not wages. Also people with loans are in trouble or could be.
Otherwise sure.
US policy is to suppress wages such that it is lower than overall inflation. Meaning profit/asset inflation and scarcity is good, wages bad.
China had wage inflation of 2.8% in 2024, and is expected 5% in 2025. Overall CPI growth is just 0.2%. In such an environment, both consumer and business loans are safe because economy keeps growing despite deflation. Deflation also means higher profits for lender that is repaid. For homes/mortgages, deflation means lower interest rates which improves home affordability and sustains home values.
In US, logic is to only lend to businesses who will enjoy extortionist pricing power, lower taxes, and oppression of their work force. The policy risks a stagnation spiral. Can’t afford all of the borrowers’ products and sales drop despite individual borrower extortion power.