There are different kinds of deflation, the consumer price deflation being the least dangerous one. As long as people have money, price deflation is even beneficiary as the real purchasing power grows. The legend of consumers postponing their purchases ad infinitum in the anticipation of ever cheaper prices is – well, just a legend.
Another situation occurs when people do not have enough money. The wage deflation is a different beast. It really bites. This is the picture of the early 1920's British deflation.
Britain would experience one more period of wage deflation from 1927 to 1933. While wages would decrease by "only" seven percent during that interval, it would nevertheless bring a lot of support to the radical left. Clement Attlee's victory in 1945 was largely won during the two Britain's interwar deflationary episodes.