r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 9h ago

Meme needing explanation Petah?

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u/[deleted] 9h ago edited 8h ago

[deleted]

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u/AI_abuser 8h ago

Explain to me please why printing more money and giving it to people an masse (like stimulus checks during Covid) wouldn't help deflation.

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u/DesignerMaximum1342 8h ago

Lets say the government gives anyone in the US a stimulus of $500, stores can now ask more for their products knowing people have more to spend, but the prices stay at a higher point so the prices are inflated and the overall value of the currency deflates. Did you hear your elderly talk about what you could buy for a dollar in their days, and how worthless a single dollar is today? Thats the same principle.

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u/samrus 8h ago

the person your responding to is proposing an idea to curb defaltion. you saying that would cause inflation, which is exactly what we would would to counteract deflation. whats the problem?

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u/escapingspirals 8h ago

Because the inflation was a result of a stimulus. The stimulus was a temporary or one-time thing. The inflation, however, stays around.

Edit to add: the ideal would be for wages to rise.

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u/samrus 8h ago

yeah. we want a little inflation for the economy to work properly. if we have too much we can curb it. thats easier to do than curbing deflation. whats the problem with that?