We have to realise that nothing in this world costs more every year because of it's value increasing. It costs more, because the value of FIAT decreases due to inflation.
But if people aren't encouraged to spend, then they wont and as a result will end up screwing themselves out of higher wages because there will not be a market for their goods.
Whether they're paid/are spending in fiat or Bitcoin, it doesn't matter, right?
So, in case 0.00000001 BTC ever buys you a house, the protocol can be adjusted to allow for even smaller amounts to be used in order to purchase, for instance, a loaf of bread.
This wont actually fix deflationary pressure from the above issue though? It'll just allow for a true value to be found at the time?
they will get encouraged to spend when there food runs out and the goods they already have needs replacing.