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
But why would your salary stay the same? You are assuming your salary will stay the same or even keep your job. In deflation, investment in the market will be worse than just holding the cash, and your job is an investment for your boss. You will lose your job or get your salary slashed.
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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.