Deflation is not a healthy system under capitalism, where people must work to survive. In the ideal scenario the value of work would approach zero due to a reduction of money in circulation. Work done yesterday would always be worth more than work done today and generational wealth would eventually become necessary to not be locked in servitude to the wealthy.
How can the value of work ever approach zero? Human work is value.
The value of anything simply derives from the quantity and quality (demand/supply) of the human work that goes into producing it.
In the current inflationary system, people are working for something that the banking system produces for almost nothing i.e. in the eyes of the banks/government, they are working for almost free.
> How can the value of work ever approach zero? Human work is value.
It would never reach zero, it would keep approaching zero though (relative to the amount of money of people who earnt it before you).
Basically, someone could just hoard the cash they have at 0% risk and still get richer than you over time even if you manage to save 100% of your salary. How is that a reasonable system that encourages growth in productivity?
Of course we have bonds but when real interest rates are close to zero than doesn't work that well like in a deflationary system e.g. throughout much of the 1800s yields were 4-5% and deflation was basically the standard outside of major wars since the economy was growing faster than the supply of money was, so basically you could just not do anything productive with your wealth and still do fine, that's basically how British aristocrats from all the novels (and similar parasitical classes) sustained their lifestyles while not providing anything useful in return to the working classes whose taxes and severely depressed incomes made this whole thing possible).
This isn't true historically. In ancient times, a day's labor was the unit of currency. A "talent" in the Bible, for example, is a unit of metal representative of a day's wages.
