> Yet we think it is good that regular people spend their earnings on stock, and it is generally considered to be one of the things which made American economy uniquely strong

I...don't think you know what stocks actually are. Your argument doesn't make sense because stocks are the literal exact opposite of a deflationary good lol.

Companies issue stock to raise money. If you buy stock from a company, you're giving them that money in exchange for a small stake in ownership.

It gets more complicated with stock markets and all the other stuff, but the heart of it is taking money that would normally sit for decades doing nothing and giving it to those who can use it right now.

> Reality seems to disagree here.

It only does if you don't know how things work and don't want to learn lol