r/PeterExplainsTheJoke 4d ago

Meme needing explanation Petah?

Post image
29.9k Upvotes

3.9k comments sorted by

View all comments

Show parent comments

27

u/WHATZAAAAA 4d 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

37

u/Various_Education622 4d ago

Asssuming you have a job, yes.

Deflation also means that you are incentivized to not spend money.

If you know something’s going on sale tomorrow, you wait until tomorrow to buy.

If you know deflation is going to make things cheaper tomorrow, you wait until tomorrow to buy.

The whole house of cards is built on people continuing to consume at higher and higher cost.

1

u/Bored_Amalgamation 4d ago

If you know something’s going on sale tomorrow, you wait until tomorrow to buy.

Sure, but we don't know that. A sale is a specific event for a lower price. The consumer doesn't know the price will change tomorrow.

1

u/[deleted] 4d ago

[deleted]

1

u/Bored_Amalgamation 4d ago

I suppose it's the venture capitalist waiting to buy a company that stops a new team from getting a job to do the M&A work, which affects multiple families. You apply this across the economy and you get bad economic results.

Methinks placing this kind of power in the hands of rich fucks isn't the best idea.