Over half of federal workers are unionized so if Elmo fucks around too much, he just may find out. Many government workers are getting below market rates in exchange for good benefits, security and some sense of helping the commonwealth. They did not sign up for dealing with this chucklefuck. Replacing a bunch of sysadmins, accountants, lawyers and scientists at government pay levels would be challenging.
The average person likes stuff and wants their stuff now. The average person will buy shit on a credit card even though saving up to pay cash would make the cost much cheaper. Particularly disciplined people may put off purchases for a few months if they think the price will drop (maybe a few years for something really big like a house) but those folks are the exception rather than the rule. Are there real world examples of times when deflation triggered a mass consumer cash hoarding? Or is this something that only exists in economics books?
If you’re talking about investing and the behavior of companies, then maybe you’re right. Although I suspect it would also depend on interest rates and stock market performance.