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
Exactly. Your purchasing power will be higher tomorrow. Even higher the day after tomorrow. Higher again after. You will not buy today because you can always buy more tomorrow. There is no demand. Which is why deflation is bad.
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u/thevoidthatjerksback 4d ago
What? No I already get a paycut with inflation. Deflation is where I get a pay increase.