If you’re an individual investor, given the choice between the 2 scenarios, would you rather exist in a world with 2% deflation, where you have to make more than a 2% return on investment in order for it to have been worthwhile, or a world with 2% inflation, where you don’t even need to correctly pick a growing investment, and even an investment that just holds a stable value is worthwhile.

Deflation world. Invest $100 in a 2% risk free bond for a year. End up with $102 nominal ($104 real)

Inflation world. Invest $100 in a 2% risk free bond for a year. End up with $102 nominal ($100 real)

As an investor, the deflation world looks better to me.

But this is naive and childish to think that an environment where you just get free wealth for no reason by doing nothing is healthy for an economy as a whole.

You are literally describing the current world of investment. You have to go full communist to live in your “healthy” world.

I suspect this is not at all what you meant to write, but it’s hilarious that came out like this.

we live in a reality of moderate economic growth, so therefore moderate inflation is required to maintain it.

This is not true. But you may be referring to the money supply rather than price inflation so I’ll let it pass.

Technically, deflation isn’t always theoretically bad and inflation isn’t always theoretically good.

Agreed. We could leave the discussion here and part amicably.