Quote:
Originally Posted by Crowe
Are there any recent examples of massive deflation occurring in an economy, and how it affected everyday living for average folks?
I'd take a guess that inflation is almost always worse due to the working class feeling the effects. But I could see how deflation could possibly lead to layoffs at companies/businesses. Many States have labor laws saying you can't give someone a pay cut. But you can still fire them for any reason you want to.
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'Great Depression' - and the deflation of wheat prices in the 1930s might serve as an example , subsequent bank foreclosures on properties and the effect on towns in the Midwest, places like the panhandle of OK .