r/PeterExplainsTheJoke 9h ago

Meme needing explanation Petah?

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u/thevoidthatjerksback 8h ago

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

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u/a1b2t 8h ago

today you earn $1000, next year you take a pay cut to $950 = 5% deflation

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u/thevoidthatjerksback 8h ago

What? No I already get a paycut with inflation. Deflation is where I get a pay increase.

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u/Kehprei 7h ago

It is not the norm to have your pay get cut in an inflationary economy. It is in a deflationary economy.

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u/ConfessSomeMeow 6h ago

They're saying a pay raise is not assumed, and that without a pay raise, in real terms they get a pay cut because inflation reduces the buying power of their salary.

They're then assuming that the same employer who refuses to give a pay raise in an inflationary environment, wouldn't claw back some of their salary, to claim that steady nominal pay would essentially give them a pay raise.