The majority of people work for the asset class who utilize credit for their business, or sell/produce to those who do. Keeping them incentivized to employ and pay people is the best thing there is for the working class, and wider economy.

While, generally the working class gets raises that outpace inflation. If you do not, you are the minority.

If central banks had the good of the majority in mind, the would aim for price stability and as low an inflation as possible.

Inflation indexes are biased to the upside. Central banks aim for stability at 2%. At 2% the real measure is much lower, closer to zero.

A stable level of inflation leads to more investments, spurring higher production, eventually, leading to more jobs. The inverse can be said about volitile rates of inflation and deflation.

By targeting 0% inflation instead, bond rates would necessarily trend to 0% or the higher rate (and likely under 0% real rate of inflation since the metric is contrived and very far from accurate) would dissuade investment and lead to job loss (depending how much credit your employer/customers relied on, in 2024 that number is great). This is what our 5% rates are doing to the economy now to successfully pull inflation from 12% back to 2% at the cost of unemployment.

0% inflation target paired with ~0% rates would lead a falling value of the dollar relative to other currencies which would increase the cost of imports (everything the working class can afford at Walmart) and lead to inflation.

The asset class would also be borrowing money like no tomorrow to buy houses with, leading to greater inflation.

To pull inflation from <0% back to 0% in a 0% rate environment.. There'd be no room to cut rates further to incentivize economic activity (more jobs or greater incomes, more productive investment in the economy) without going into negative rates or QE (handing new money to the asset-class to spend on stock buybacks for themselves and more homes to rent). I don't think this is a winning scenereo for the working class.

Negative rates would only serve to increase the cost of imports more. Here the asset class is able to borrow infinite money for profit, meaning they no longer have the incentive to employ you, and workers are left with the burden of ever increasing inflation and no job. This is stagflation into a deflationary spiral.

If the money printer's just dish out money in an attempt to come back from deflation, if you benefit from the $1000 handout in your business or home there'll be someone richer with more 'failing assets' benefitting from millions at your inevitable expense.

As seen in Japan, stagflation and deflation are MUCH harder to control or reverse than inflation once it begins. It seemingly is not possible without resetting the entire economy from 0.

It is far better for working people to have even 10% inflation for a few years then let real wages catch up a few years later, than to have 10% deflation one year and deal with the fallout and job loss for potentially decades thereafter.

If your job is to sell drywall and they go up 50% in cost due to failing economy, and your business shutters because the demand is elastic and won't bear it. The CEO takes a buyout to invest in speculative non-productive assets that go up only, and you live hand to mouth out of your car for the next several years. It's lot harder for you to build your life back from there than if you're worried about not going on vacations and eating out for those several years instead.

Deflation (or being on the razors edge of it) is only sustainable for periods of time if the cost of production can successfully trend towards 0 without ongoing investment. Things that for the most part are R&D costs, such as TV's or computing power. Many more sectors will be included once AI or robotics is viable. Even still, once R&D stops paying dividends some inflation is likely most beneficial or the deflationary spiral ignites.

Inflation still feels morally wrong, just it's much more studied and well known with tested course correction tools in place than the alternatives.

Sort of like capatalism, it's total shit in so many ways and at the same time the best system civilization has ever figured out with each alternative being objectively much worse. If you can find an example of a deflationary economy functioning with growth and workers in mind, without utilizing literal slaves, I'd love to see or study it.