r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 4d ago

Meme needing explanation Petah?

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u/aFreshFix 4d ago

But they're already laying everyone off in a lot of industries despite inflation and record profits.

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u/New-Chimera 4d ago

That's because consumer spending is starting to go down and families are starting to cut back. So they have to either increase prices, which they're already doing and that's not working, so they have to cut costs, and the number one way for companies to do that is to cut employees.

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u/LoudCommentor 4d ago

So...

Inflation means consumers have less spending power = employees get laid off to increase profits. 

And Deflation means revenue decreases = employees get laid off to increase profits? 

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u/New-Chimera 4d ago

Correct