That grocer likely has loans which are now much more expensive in real terms. Same with the farmer who sells their goods to the grocer. The manufacturer of parts to repair cars also has them. With deflation, all of them bring in less money but have increased real costs. So they cut costs by paying workers less or more likely laying them off. It's good for banks though. They have loans out that now get amazing returns and can simply stop loaning money out because just having the money sit their provides a pretty good return.

I’m not even sure what you’re taking about it. But from the worker/anti capitalist perspective, deflation is even worse. The working class, who holds huge amounts of debt like student loans, ends up paying more as the value of money decreases. Imagine all of your student debts increasing in real value over time, on top of the already existing interest rate.

No, that applies to all fucking business. Grocers, for instance, make very little off what they sell. Farmers make an even smaller profit margin. Hitting them across the board with lower revenue while their fixed costs are still largely the same is a recipe for them going under and the bank seizing the assets.

Calling for deflation is literally having compassion for bankers. So good on you, mate. Keep on licking the boots of those bankers.

Both, it's a positive feedback loop, and in the end it doesn't really matter what started it once the economy crashes you've gone through multiple lack of demand -> prices fall -> even more lack of demand iterations.

"positive" as in engineering, not as in good

What I described is independent of CEO behaviour. It's also not actually about washing machines, it's about money needing to circulate and consumers not consuming stopping that. How China got itself into the situation is irrelevant, what matters, on the business side, is the sudden lack of liquidity as the company's source of income dries up while costs (wages, anything fixed even if you shut down production) continue.

What you say about CEOs might be true -- but then China is a command economy. It could just order CEOs to cut the shit. The comrades in the central committee, in all their wisdom, apparently only want to harden the Chinese people against hardship that's why they're crashing the economy it is for the betterment of the nation and the success of socialism.

Yeah because I totally was talking about washing machines.

i have no idea why a small amount of inflation is considered ideal

Because it encourages money to participate in the economy. If an economy gets stuck in a deflationary cycle, it encourages people to stop putting their money into the economy to invest or to act as a way to get people to make purchases sooner.

That can be ideal if you are anticonsumption, but not so much if you are relying on a low unemployment rate to help keep people happy.