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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1w4api1/petah/p76ogyk/?context=3
r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 8h ago
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749
its japans economic trap, worse than inflation.
249 u/Grouchy_Theme1461 7h ago bruh u gotta explain it 21 u/Ordo_Liberal 7h ago Let's say that you want to buy a PS5. But the PS5 price is falling everyday. Everyday you think, huh, why buy today if I can buy it tomorrow and save a few bucks. You do that and the store goes bankrupt because no one is buying anything. Now every employee is unemployed. This is why deflation is worse than inflation. The same shit happens with stocks, loans, industrial goods... That's why as much as everyone hates inflation, deflation is worse 4 u/Fantastic-Kale9603 6h ago Also debt; the real value of your debt becomes a lot worse in a deflationary environment (set in a pre-deflation value but paid back with post-deflation lower salaries), so many people would go bankrupt trying to make payments.
249
bruh u gotta explain it
21 u/Ordo_Liberal 7h ago Let's say that you want to buy a PS5. But the PS5 price is falling everyday. Everyday you think, huh, why buy today if I can buy it tomorrow and save a few bucks. You do that and the store goes bankrupt because no one is buying anything. Now every employee is unemployed. This is why deflation is worse than inflation. The same shit happens with stocks, loans, industrial goods... That's why as much as everyone hates inflation, deflation is worse 4 u/Fantastic-Kale9603 6h ago Also debt; the real value of your debt becomes a lot worse in a deflationary environment (set in a pre-deflation value but paid back with post-deflation lower salaries), so many people would go bankrupt trying to make payments.
21
Let's say that you want to buy a PS5.
But the PS5 price is falling everyday.
Everyday you think, huh, why buy today if I can buy it tomorrow and save a few bucks.
You do that and the store goes bankrupt because no one is buying anything. Now every employee is unemployed.
This is why deflation is worse than inflation.
The same shit happens with stocks, loans, industrial goods...
That's why as much as everyone hates inflation, deflation is worse
4 u/Fantastic-Kale9603 6h ago Also debt; the real value of your debt becomes a lot worse in a deflationary environment (set in a pre-deflation value but paid back with post-deflation lower salaries), so many people would go bankrupt trying to make payments.
4
Also debt; the real value of your debt becomes a lot worse in a deflationary environment (set in a pre-deflation value but paid back with post-deflation lower salaries), so many people would go bankrupt trying to make payments.
749
u/nebileyim_ben 8h ago edited 8h ago
its japans economic trap, worse than inflation.