r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 9h ago

Meme needing explanation Petah?

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u/thevoidthatjerksback 8h ago

Hobbits disagree with you on that. Also banks pay interest on savings accounts. Arguably the richest already are on the do nothing train. Deflation would just allow for everyone to benefit from that

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u/HollowCap456 8h ago edited 7h ago

No. Deflation means thing that costs 20 today will cost 19 tomorrow. Why buy something today, when you can buy it for 1 less tomorrow? Why buy tomorrow when you can buy the day after tomorrow. And so on and so forth. Under deflation, the entire consumer side of the market collapses, no one buys anything anymore. Producers cannot produce more because it will cause loss, and they aren't gaining capital. No buying/selling, liquidity drops, economy's dead. Recession.

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u/Martin_Aricov_D 8h ago

Except that people still need to eat

So they'll still buy food

And toilet paper

And since things are cheaper they'll go to the movies more

And buy things they want

Fix things in their homes

Upgrade their cars

There's literally always something else to buy nowadays.

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u/HollowCap456 8h ago

They won't do it until they're dropping dead. And, why would any producer sell at a loss? No transactions. Dead economy.

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u/Lord_Viktoo 7h ago

I'm... Not gonna starve waiting for the spaghetti to stop losing value ? I'm gonna buy spaghetti cause I need to eat.

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u/HollowCap456 7h ago

sure. The seller sells you spaghtti for a dollar of profit today, breaks even tomorrow, and loses a dollar the next day. A week later, the seller closes shops because it is impossible to stay afloat. Recession.