A lower population amounts to less demand for products and services, which will depress prices. Sure, you've got more money out there, per person, but less people buying shit. This happens when there is a recession, prices drop to reflect demand. Think of home prices after the bubble burst in 2008. There was a shit ton of supply built up from the boom too, but not enough demand.
I believe OP is wrong, though, about deflation being inevitable. In the 1970s you had inflation and stagnant economy, and Japan has a declining population but lots of inflation. Moreover, America keeps bringing in more immigrants, legal and illegal. Plus the printing press is still running hot. The result of this, is continued inflation.
IMO that is completely backwards.
Having fewer people divides out more currency per person.
A lower population amounts to less demand for products and services, which will depress prices. Sure, you've got more money out there, per person, but less people buying shit. This happens when there is a recession, prices drop to reflect demand. Think of home prices after the bubble burst in 2008. There was a shit ton of supply built up from the boom too, but not enough demand.
I believe OP is wrong, though, about deflation being inevitable. In the 1970s you had inflation and stagnant economy, and Japan has a declining population but lots of inflation. Moreover, America keeps bringing in more immigrants, legal and illegal. Plus the printing press is still running hot. The result of this, is continued inflation.
A lower population amounts to less supply for products and services, which will increase prices.
You would be using using yesterday's stockpiled supply.
This is like selling the national oil reserve and saying you are increasing production.