r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 8h ago

Meme needing explanation Petah?

Post image
13.3k Upvotes

92% Upvoted

2.5k comments sorted by

View all comments

Show parent comments

706

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.

156

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.

136

u/gicjos 6h ago

The prices only go down when people don't have enough money to buy things. For the prices to go down most people will be in a really bad situation 

3

u/Dry-Nectarine-3279 4h ago

There are other causes for deflation, such as technological advancement, demographic shifts, demand shifts, or money supply contraction.