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/ringobob 3h ago

You don't get a pay cut with inflation. You get a buying power cut with inflation, your pay stays the same, and you probably get a yearly pay increase, that come from increased profits, that are also up due to inflation.

With deflation, your company is probably seeing less revenue, because that's what deflation means - the price they're charging is going down. Less revenue. If your salary stays the same, your buying power increases, but your company can't afford to keep paying you what they were, because of less revenue (deflation, lower prices).

So, either they reduce your pay and your buying power doesn't increase, or they fire you and your buying power goes to zero.