At the risk of getting downvotes to hell here goes :

Deflation on surface does seem good, everything getting cheaper.

What happens in reality is that, people stop spending money in the hopes of getting the same thing cheaper down the line. (I am not talking about graphic cards and cell phones, I am talking houses, commercial investments and such)

No one wants to buy = no one can sell anything.

Also the way the economy grows is by borrowing money today.

Inflation in a way incentives investment into business that produce goods or services. These things add value to the economy. That’s how the GDP grows. Sure your $ is losing value by keeping it in a bank, that is not an accident. It is by design so that you invest.

Now if you wanted to buy a house, you want to borrow money. No one is going to loan you money if they don’t have a profit in it for themselves. With a deflationary environment if anyone loans you money for the house and the house is decreasing on price. How is the investor going to recoup his money ? You bought for $100 and it is after 5 years for $80. Not only has the investors lost money, so have you if you want to sell it and move elsewhere.

The ugly part of it all is that a lot of these businesses and governments misuse this to their benefit. They borrow to no end and just keep investing their own profits in other assets, all the while becoming bigger.

If you are invested, you win, if not you lose.