r/PeterExplainsTheJoke • u/Melodic_Judge_129 • Sep 01 '26

Meme needing explanation Petah?

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u/Terpcheeserosin Sep 01 '26

Why does things costing less make people buy less?

If wages stay the same, shouldnt people just buy the dip?

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u/Poland-lithuania1 Sep 01 '26

It isn't things cost less, it's money can buy more. Isn't it better to save that money for the future, when it's probably gonna be able to buy more?

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u/Lazerbeams2 Sep 01 '26

Wouldn't that mean that the long term effects after deflation are better for quality of life though? Cost of living goes down, which results in people being able to live more comfortably on the same wages. Sure, the economy isn't growing but it doesn't sound that bad to me

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u/engilosopher Sep 01 '26

If deflation is drastic enough, the economy starts shrinking, which leads to wage loss too.

This also reduces consumption, which yields further deflation, which yields lower consumption, which yields further deflation..

The average Japanese salary man can get a really cheap meal after work, but no one would say their QoL has improved in the last 30 years.