Petah?

[u/Melodic_Judge_129]

[u/Terpcheeserosin]

So things don't cost less

But money can buy more?

So right now eggs are 10$ a pack

After deflation

You can buy 2 for 10 dollars because "money can buy more"

How is that not also, "eggs cost less" ?

[u/InternalCapable5286 → u/Terpcheeserosin]

It's more about people holding out on buying things because they believe it will be cheaper later. Food is a bad example because people will always buy food, regardless of the cost. But why would you buy a car if it might be $2,000 cheaper in a few months? Then a few months pass and now it looks like that car might be even cheaper, will you spend now or keep holding out to see if it goes lower?

[u/Terpcheeserosin → u/InternalCapable5286]

I only buy cars when I need one

[u/InternalCapable5286 → u/Terpcheeserosin]

But you're not the only spender in the economy, and the point is about goods that have a more elastic demand than food.