r/PeterExplainsTheJoke 8h ago

Meme needing explanation Petah?

Post image
13.3k Upvotes

2.5k comments sorted by

View all comments

Show parent comments

1.0k

u/IrksomFlotsom 7h ago

Try and think of our global system as an engine that's purpose is to make fuel for itself. It needs to keep it's input above the output in order to keep powered on. As soon as the input drops below output the machine starts to slow down and can no longer sustain itself. The engine is not designed to slow down so it very quickly breaks down

699

u/Gentle_Snail 7h ago edited 7h ago

Deflation can also result in a very negative feedback loop, the Great Depression was a deflation spiral for example.

161

u/Mayor_Death 6h ago

Is deflation a cause or symptom, though? To me, it’s just a number, but I understand that it is more than that to various economic groups.

As far as I understand it, deflation indicates that prices are going down, which is a good thing to me individually.

17

u/UmberOx 6h ago

Are you very wealthy and/or have alot of secured assets?