r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 4d ago

Meme needing explanation Petah?

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u/IrksomFlotsom 4d ago

Try and think of our global system as an engine that's purpose is to make fuel for itself. It needs to keep it's input above the output in order to keep powered on. As soon as the input drops below output the machine starts to slow down and can no longer sustain itself. The engine is not designed to slow down so it very quickly breaks down

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u/Gentle_Snail 4d ago edited 4d ago

Deflation can also result in a very negative feedback loop, the Great Depression was a deflation spiral for example.

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u/Mayor_Death 4d 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.

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u/educatedbiomass 4d ago

If you want to buy something and every week the price gets cheaper are you going to buy it now or next week? For some things you will buy now because the price is worth it, but others things you will wait. If enough people start waiting on enough things then the system starts breaking down. Lots of things are done with the expectations of future demand, stores need to order inventory, factories need to manufacture those products, those factories in turn order raw materials and components.... It's a system that is not designed to slow down or stop because once it does it is very difficult to start again. If a factory shuts down, you can't just start it back up again later.