If you’re a Keynesian.
Robert Samuelson is still whining about the supposed evils of deflation.
His economics is terrible, but his journalism is beyond ridiculous, describing deflations as “terrifying” and “menacing.” Do they still teach such melodrama in J-school?
I’m sure you’ve been sitting up nights worrying about how much worse off you are now that gas is only 2 dollars per gallon instead of 4 dollars per gallon. Clearly, the government should act immediately to make gas 6 dollars per gallon ASAP. It’s for the good of the economy.
The bubble-burst has brought down the price of many things to where they should be, but Samuelson still thinks that cheap food is what caused the Great Depression, so…inflate.
He’s right about one thing. Deflation is bad for debtors and good for creditors. What he forgets is that everyone who saves and invests is a creditor, so is it so awful for those people to catch a break once in their little lives? Must debtors always be the only ones rewarded by our fiscal and monetary policies?
UPDATE: Here are two resources on the non-evil that is deflation:
An article by Philipp Bagus from the Quarterly Journal of Austrian Economics
Hulsmann on “Deflation and Liberty”