r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 9h ago

Meme needing explanation Petah?

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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/ujfalusiabel 7h ago

Deflation is where I get a pay increase.

You don't. Your employee will have to lower prices and as a consequence, lowers your wage.

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u/35jg9z 4h ago

In practice they just fire you and hire someone new at the lower wage

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u/ujfalusiabel 4h ago

More likely yeah. But I have seen stuff like the employer giving a choice between firing you and you accepting lower wages. Though that was not even in deflation but like 10% inflation. But the company was failing and at the edge of bankruptcy so somewhat understandable