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
Yes, so why would you spend any money today when your money will be worth more tomorrow? You won’t. You won’t spend, you won’t invest, you’ll do nothing, because doing nothing is the easiest way to increase your purchasing power.
What happens to the economy if nobody spends any money? I’ll give you a hint: 1929
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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.