Are Inflation and Deflation the Worst Economic Threats?

[RockBell]

I am not an economist but from the little I know about the economy, I have viewed inflation and deflation as factors that can destabilize a country's  economy. But I often question myself if they truly the worst things that can happen to a country's economy. Are they? I know how inflation reduces the purchasing power of the people, while deflation decreases consumers spending and holds the economy stagnant. However, what about the other issues like high unemployment, political instability, and severe income inequality aren't they are as equally damaging or even more damaging than inflation and deflation? Do you think inflation and deflation are the ultimate threats, or should we consider other economic factors as potentially more detrimental?

A lot of businesses have suffered just because of inflation, and at the same time has made the global market to be unstable because if you look at the global market everything is affected I know the experience of every country will be different. inflation has a lot of effects on the economy and not only on the economy it reduces demand because not everyone will have the money to be able to buy, and even those that have money to buy will reduce the quantity just because they want to cut cost, and at some point it brings confusion because as the experts are seeking solution the same time they are creating more problems. so inflation cause more harm than we can think of, inflation also affect the currency of a nation, and the remedy i see experts gives does not look useful for me the only one i see is to leave with it because even people we are hoping for them to give us solution is no longer their concern what people are going through.

[stompix]

I'm just like you that not an economist but I think it was only inflation is the ones that can destabilize a country or the ones that is a threat to it and not deflation because it was the opposite of it (inflation) which means it can help us to bring back the low value of the goods again, or can bring us the true power of our local currencies again.

Deflation is far worse than you think, just because it grants you cheaper goods it also comes with an avalanche of  other effects. For example, cheaper goods mean lower wages paid, right, because there is not point in selling a pizza for half of the price and still paying the delivery by the same,  lower wages mean also less consumption and as prices go down people are not keen on buying stuff like houses or land or cars, meaning unemployment in the construction sector in the industry, and then a death spiral like it has happened last century.

agreed with this, debt is also one way that become the culprit of economic threat, it also correlate with inflation,

Yeah because Japan in a deflation period having a higher GDP/debt ratio than Argentina experiencing 200% inflation is obviously an example of that.

[Peanutswar]

Every year theres an increase in the percentage of inflation and a country needs to control the economy properly because they cant make the balance for the inflation the price of the needs of the people will get increase and still they have the same amount of salary they will get shorten with their financials also if you will check only a small amount of percentage every year people increase on their salary and include here the number of taxes they need to pay. Regarding with deflation seems people will agree on the bottom line that they can now afford things but if the cheaper the price the higher the chance they get small GDP if they will tally at the end of the year so if this is balanced people will easily can adopt with the changes and they didn't need to suffer too much. Seems only the upper class and higher-middle class can afford to survive with the inflation rate at least.

[davis196]

I am not an economist but from the little I know about the economy, I have viewed inflation and deflation as factors that can destabilize a country's  economy. But I often question myself if they truly the worst things that can happen to a country's economy. Are they? I know how inflation reduces the purchasing power of the people, while deflation decreases consumers spending and holds the economy stagnant. However, what about the other issues like high unemployment, political instability, and severe income inequality aren't they are as equally damaging or even more damaging than inflation and deflation? Do you think inflation and deflation are the ultimate threats, or should we consider other economic factors as potentially more detrimental?

Recession/depression is a bigger economic threat than inflation/deflation. The good thing is that governments have evolved and they know how to deal with recessions/depressions, by using the instruments of fiscal and monetary policy. John Maynard Keynes told us how to solve the problem, when the country is facing an economic downturn.
Another big economic problem is the "poverty trap" which is very common in the underdeveloped countries. The population is growing faster than the country's GDP and this creates greater poverty. The government doesn't have enough money to invest in education and healthcare, which heavily decreases the quality of life in those underdeveloped countries.