r/PeterExplainsTheJoke 8h ago

Meme needing explanation Petah?

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u/StuartMcNight 8h ago

Low inflation might be the first step towards deflation. Many economists would argue that deflation is a worse situation for the economy because it leads to a sharp drop of consumption and therefore a huge recession follows?

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u/thevoidthatjerksback 7h ago

I doubt that anyone could explain this in a way where I would accept deflation as worse

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u/fespadea 7h ago

Deflation is bad for borrowers and good for lenders. Most people are borrowers rather than lenders, so it's bad for most people.