Comment Re:That's called deflation, not inflation (Score 1) 141
Is this a joke? The only example in that set holds true is food, because you might starve before it gets cheaper. I have heard many people say:
"I will wait buying a new car, because next year it is cheaper, and my current one still works fine."
Maybe yours doesn't work fine, but most people have a car that works, and if it doesn't, they can pay someone to repair it. The reason the phone example is better is because phones are much more noticeably improving in performance and lowering in costs than cars do, but cars also get cheaper and better as time passes.
Also look at mortgages: "I will wait with fully paying my mortgage, because I get to mortgage payments from my taxes, and investing in bitcoin might have a higher return". When I was a kid, I heard the same about student loans and the stock market. Now that Trump has a passed a tax cut, I am hearing "I will fully pay my mortgage this year, because of the tax cuts, my mortgage won't be deductible next year, so I'm paying it now".
Even with food, if you thought there was a half off sale tomorrow, but not today, you might wait on buying food. If you were very hungry, you might buy a day's worth of food today, and a week's worth of food tomorrow, rather than buy a week's worth of food today.
Deflation very much causes these effects. And I'm not convinced deflation is a wealth transfer from the rich to the poor. People who had bitcoin in the early days are now rich in bitcoin now. If you want to get that many bitcoins now, you will have exchange a lot more money (or electricity) than they did to get the same amount. Perhaps they were "poor" back then, but if you are poor now, that doesn't help you any.