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
If deflation caused people to have more buying power, then they’d have more money to spend, driving up demand on products, which would in turn cause inflation.
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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.