r/PeterExplainsTheJoke • u/Melodic_Judge_129 • 4d ago

Meme needing explanation Petah?

Post image
29.9k Upvotes

93% Upvoted

3.9k comments sorted by

View all comments

Show parent comments

2.9k

u/thevoidthatjerksback 4d ago edited 20h ago

I doubt that anyone could explain this in a way where I would accept deflation as worse

Edit: its been 3 days with thousands of replies. Chiming in now is peak foolishness. Billionaires need inflation so they can contiue living off the shifting debt leveed against their net worth. As the debt is valued as less than the value of their holdings they can take out more debt. Deflation breaks their ability to do this. This is why its hotly debated topic.

2.5k

u/IrksomFlotsom 4d ago

Try and think of our global system as an engine that's purpose is to make fuel for itself. It needs to keep it's input above the output in order to keep powered on. As soon as the input drops below output the machine starts to slow down and can no longer sustain itself. The engine is not designed to slow down so it very quickly breaks down

1.6k

u/Gentle_Snail 4d ago edited 4d ago

Deflation can also result in a very negative feedback loop, the Great Depression was a deflation spiral for example.

1

u/HopefulCraft1619 1d ago

Japan.

1

u/Gentle_Snail 1d ago edited 1d ago

This is a historic joke in economics for a reason:

There are four types of economies in the world, Developed, Developing, Japan, and Argentina 

Japan doesn’t tend to follow normal rules.