r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 9h ago

Meme needing explanation Petah?

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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/a1b2t 8h ago

And why does it increase?

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u/WHATZAAAAA 8h ago

Legit please do correct me if i'm wrong, but if price of product x goes from 5 to 10, my 1000 salary would mean i can now only buy 100 of x instead of 200, but if x went from 5 to 2, it means that, while my salary is still the same, my purchase power is now higher, because now i can buy 500 of x instead of 200

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u/7818 3h ago

Check my other post in this thread. I explain how the deflationary death spiral occurs from the perspective of a business owner.