Everyone's goal should be to maximize the cost of labour while minimizing the price of land and capital. It matter less whether there is inflation or deflation and far more that labour costs makes up the greatest portion of this formula (Translated to Algebra, from the Wealth of Nations by Adam Smith):
Cost = Land + Labour + Capital
The West has instead been trying to minimize the cost of labour since around 1970 or 1980, exactly the opposite of what a civilization that wants to remain a world power should be doing.
The greater the cost of labour, the more people can afford to pay costs. This includes the cost of starting new businesses, education, and so many of the things that make a country dynamic, wealthy and prosperous.
This can be seen in how China has risen by steadily increasing the cost of its labour while countries that have followed Western ideas of minimizing their labour costs have become poorer, defaulted on their debt, or remained third world countries.