Because velocity tends to return to historical norms in a functioning economy, and if velocity doesn't return to historical norms - say it goes to infinity, like in Weimar hyperinflation, or it goes to zero, like in Japan-style depression - you have bigger problems.
The "velocity is dropping so we need to print more" argument runs into scary problems if you make it without understanding why velocity is dropping. If it's because all the wealth is concentrating within a certain sliver of the population (like 2008-2020 U.S), that's a really big problem that's going to cause mass social instability. If it's because everybody's shutting themselves in their room and not spending money or engaging with society (like Japan), that's also a really big problem. If it reverses and returns to historical norms and beyond (as I suspect will happen), that's also a problem.
A big contrarian position in 2008 that I thought was nuts at the time but now think is very likely was that we were going to get "Deflation, then hyperinflation". I didn't understand the hyperinflation part then, but the argument was that deflation would lead the Fed to keep expanding the money supply, which would pool among a small number of people, until some spark triggered that group to spend money. COVID-related supply chain disruptions were that spark, and I think the hyperinflation case is increasingly likely now.
The "velocity is dropping so we need to print more" argument runs into scary problems if you make it without understanding why velocity is dropping. If it's because all the wealth is concentrating within a certain sliver of the population (like 2008-2020 U.S), that's a really big problem that's going to cause mass social instability. If it's because everybody's shutting themselves in their room and not spending money or engaging with society (like Japan), that's also a really big problem. If it reverses and returns to historical norms and beyond (as I suspect will happen), that's also a problem.
A big contrarian position in 2008 that I thought was nuts at the time but now think is very likely was that we were going to get "Deflation, then hyperinflation". I didn't understand the hyperinflation part then, but the argument was that deflation would lead the Fed to keep expanding the money supply, which would pool among a small number of people, until some spark triggered that group to spend money. COVID-related supply chain disruptions were that spark, and I think the hyperinflation case is increasingly likely now.