Cpt. Charisma on Nostr: The biggest challenge I see in a deflationary business is the constantly rising cost ...

The biggest challenge I see in a deflationary business is the constantly rising cost of labor (individual pay stays the same, but the value goes up.) You have to either lower wages periodically or find ways to get more out of your labor force. Lowering wages is difficult. People see it as a demotion. Fortunately, workers can gain skills and knowledge with time. This can provide a strong incentive to support and promote people who excel in these areas. This could lead to a world where good workers are able to keep a job for life once again.

It also provides an incentive to get rid of people who are not increasing in value. People who don't improve themselves will have a hard time as they are replace with people who will work for less. Some of this can be made up by technological productivity improvements. Unfortunately, some people, who are currently able to get by, may find themselves left behind. This could be challenging for many.