Are Inflation and Deflation the Worst Economic Threats?

[CryptopreneurBrainboss]

Do you think inflation and deflation are the ultimate threats, or should we consider other economic factors as potentially more detrimental?

Inflation and deflation has their own threats as other factors also have their own threats but I don't think they're the worst things that can happen to an economy. What I think is the worst is when an economy becomes so stable that it begins to become a victim of it's own success.

Just imagine an economy that everything is working so fine that everybody is rich and there are no poor or middle class citizens to do the low class jobs of keeping the streets/road clean. The sewage system, garbage disposing and the rest of the low class jobs that the rich won't want to do.

For an economy to be working perfectly, things have to be balanced (we need the Poor, Middle class and the Rich). Inflation and Deflation can destroy an economy and it can also build it up depending on how we respond to them affecting the economy.

[bittraffic]

Do you think inflation and deflation are the ultimate threats, or should we consider other economic factors as potentially more detrimental?

Inflation and deflation has their own threats as other factors also have their own threats but I don't think they're the worst things that can happen to an economy. What I think is the worst is when an economy becomes so stable that it begins to become a victim of it's own success.

Just imagine an economy that everything is working so fine that everybody is rich and there are no poor or middle class citizens to do the low class jobs of keeping the streets/road clean. The sewage system, garbage disposing and the rest of the low class jobs that the rich won't want to do.

For an economy to be working perfectly, things have to be balanced (we need the Poor, Middle class and the Rich). Inflation and Deflation can destroy an economy and it can also build it up depending on how we respond to them affecting the economy.

Every government problem affects the economy like that high unemployment he mentioned. But for a huge country like US, its not just the inflation that causes the economy to crumble. The policies more than likely that affected it more.

When they decide to move their manufacturing companies to China because they want globalization and all. It became a problem since.

[Spaceman1000$]

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?

Yes I think inflation and deflation poses large threat to an economy, because one of the number one factors of inflation is to reduce the purchasing powers of the citizens, what could be more detrimental than citizens not being able to afford goods and services at a moderate level.  inflation specifically has a multiplier effect as it affects productivity, hence there's no demand in the market, production reduces by certain percentage. High unemployment rate, political instability all have their side effects in an economy as they contribute to economic uncertainty but not as dangerous as inflation and deflation.

[South Park]

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?

Income inequality is at its highest point since we can measure such data, and while this brings instability to the system, the fact that so much money is concentrated in a few hands and those people can influence politicians with ease means that the system will continue as it is until it crumbles down, and the same is true for unemployment, as with the advent of AI, it is likely unemployment will keep growing out of control during the next decades.

[Antotena]

You bring up a good point about inflation and deflation. While they can definitely mess with the economy, I think high unemployment and political instability can be even more damaging. I’ve seen how tough it is for friends struggling to find work; it’s not just about the money—they start feeling lost and frustrated. Plus, when people feel like they’re not getting a fair shot, it can lead to all sorts of unrest. So yeah, while inflation and deflation are important issues, we can't ignore those other factors because they can really shake things up too.

Anything you mentioned are just subsets of inflation and deflation. Let me explain, if there is unemployment then there is gong to be less available jobs for people and that means low productivity with equivalent low availability of good and service and that means no competition, there is going to be increase in price of things which will lead to inflation and if there is political instability, there can be a war which can also lead to inflation because things are going to be scarce and readily available.

Every thing that happen in the economy will always be surrounded by inflation and deflation but most of the time, inflation occurs mostly due to political instability, unemployment, high circulation of currency, famine, natural disasters, war, biological weapons and many more. All these can give you nothing but inflation and kills economy faster than you think.

[Zoomic]

Do you think inflation and deflation are the ultimate threats, or should we consider other economic factors as potentially more detrimental?

Economic depression is worse than just inflation and deflation. A situation where nothing is working in the the country, all sectors of the economy are affected, there is high rate of unemployment, inflation, deflation, high cost of living, poor standard of living and many more is not what any country should wish for.

Although some factors like war and natural disaster which are beyond our control may cause economic depression, in most cases they are as a result of the government's carelessness and some poor economic policies put in place by the government. Those little acts of corruption the government and its people are condoning, those important aspects of the economy they are neglecting might generate into something serious and before they could be ready to fix it, lots of damages have already been done.

Some countries are already walking into economic depression. Only if they realise on time, they can fix some of these problems and save themselves years of severe hardship.

[Mame89]

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?

Both inflation and deflation are problems that greatly influence or have an impact on a country's economy because both inflation and deflation are interrelated between the two if something happens to both of them must be controlled immediately. So it can be said that yes, inflation and deflation can be bad things for the economy in every country.

If there is high inflation, it can make people have to spend a lot of money to buy goods and services. If inflation is not controlled it can hinder everything, then it will have an impact on the economic growth of a country.

Deflation can also cause problems with demand, investment, and of course will increase unemployment. However, between the two, the most difficult to control is deflation because it is a serious problem among other problems that have an impact on the decline of a country's economy. Other factors certainly exist, but these two factors play a major role in hampering the economy.

[Findingnemo]

. 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?

With inflation and deflation, all those things follows like hike in unemployment which is obviously due to the lack of profits in the business sector which again points out the financial instability and flawed political policies and system. I am not an expert either but I do read a lot of finance and from my understanding small inflation is better than deflation and that's essential to keep the circulation of currency that will increase the spending nature while contributing to the economical growth.

[Agbamoni]

Do you think inflation and deflation are the ultimate threats, or should we consider other economic factors as potentially more detrimental?

Inflation and deflation has their own threats as other factors also have their own threats but I don't think they're the worst things that can happen to an economy. What I think is the worst is when an economy becomes so stable that it begins to become a victim of it's own success.

Just imagine an economy that everything is working so fine that everybody is rich and there are no poor or middle class citizens to do the low class jobs of keeping the streets/road clean. The sewage system, garbage disposing and the rest of the low class jobs that the rich won't want to do.

For an economy to be working perfectly, things have to be balanced (we need the Poor, Middle class and the Rich). Inflation and Deflation can destroy an economy and it can also build it up depending on how we respond to them affecting the economy.

Well spoken here. An economy with no balance in the system would crumble. And funny enough such system cannot exist in this era. There must be the poor and the rich to create a balance economy. But in the meantime, an economy where inflation and deflation is a problem is one which those who attempt to progress cannot progress. Because in every country we get to see people who strive to get out of their country. Now the different between countries where inflation and deflation is not a threat and where it is a threat is that. To where it is a threat those who strive and push to get better will always be attacked by inflation every month. Many countries inflation increases more than 20% every month. Such economy no one can be able to grow or get better. But in a country where its not a threat, you see people being able to come out of poverty, especially those who put lots of effort to overcome. Even if inflation and deflation cannot be completely favorable but it should not increase faster than the efforts of every individual.

[Oluwa-btc]

With inflation, they can just adopt other currencies and go on with their lives despite the rising prices of products. Unemployment also since companies will shut down.

Do you think is that necessary or possible to adopt another countries currency and go on with live? Or do you think this very inflation isn't affecting other countries like it's affecting yours as well,all of this should be put into thought before taking certain decisions.

As much as inflation and deflation are major factors in the economic threat, political instability is the worst.

Definitely inflation have been an irristible factor to every economy growth but then there are other factors that serves as a threat to the economy, so I believe inflation is just a natural phenomenon that ought to be experienced by any growing country.

[Fortify]

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?

They can be very dangerous, but it's usually the speed that they happen that throws everyone off - when you get rapid movement in them, it can majorly disrupt supply chains because there are lots of fireworks popping off unexpectedly through the manufacturing and services involved. There is a great danger that you get caught in a cycle downwards or upwards as well, where companies are forced to raise prices due to materials increasing, then labor costs to stay competitive and it needs to be arrested or it will keep going. That is why the central banks have to act and seem to have found the acceptable balancing act this time around, however countries like Zimbabwe (hyper inflation) and Japan (stagflation) are examples everyone is trying to avoid.

[Perfectbaby]

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?

I will talk about inflation and as we know it's one thing that has gradually been increasing all these while and is on a regular basis and yet it's more manageable than that of the political hindrances, in fact some of the political issues is what attributes to inflation where they aren't open to carry out their duty effectively than their personal interest to loot and if you check Nigeria you would see that what we are talking here is a reflection to what we are experiencing today.

[o48o]

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?

Inflation isn't an issue when it's controlled, and hyper-inflation or deflation are symptoms/causes, not some external threats by themselves. Those several other issues you mentioned could impact the economy in a way that they could be a part of issues causing that hyper-inflation or deflation.

And what do you mean by "worst"? In what way? I don't think that it's constructive way to think economy to focus on what's "worst" threat for it, but on the fact that it's a really complex system where every part is required. Healthy economy has all the parts moving and it's build on resources and relations, but without resources, what ever they may be, economies won't thrive. So if i would have to pick worst thing that could happen to any economy, that would be lack of resources, and people are already preparing for it. Some people don't think it's a problem, because they think that lack of resources is probably not the issue that impacts the world during their lifetime.