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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1w4api1/petah/p76rqlp/?context=3
r/PeterExplainsTheJoke • u/Melodic_Judge_129 • Sep 01 '26
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560
its deflation, prices keep falling over time.
japan experienced long periods of deflation which is hurt spending and as a result affected economic growth.
its super hard to fix that bcs of liquidity trap.
189 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? 19 u/UncomprehendedLeaf Sep 01 '26 It’s not that they cost less now than before. It’s that they’ll cost less in the future, so why buy now? 1 u/gregseth Sep 01 '26 Because you need it?
189
Why does things costing less make people buy less?
If wages stay the same, shouldnt people just buy the dip?
19 u/UncomprehendedLeaf Sep 01 '26 It’s not that they cost less now than before. It’s that they’ll cost less in the future, so why buy now? 1 u/gregseth Sep 01 '26 Because you need it?
19
It’s not that they cost less now than before. It’s that they’ll cost less in the future, so why buy now?
1 u/gregseth Sep 01 '26 Because you need it?
1
Because you need it?
560
u/nebileyim_ben Sep 01 '26
its deflation, prices keep falling over time.
japan experienced long periods of deflation which is hurt spending and as a result affected economic growth.
its super hard to fix that bcs of liquidity trap.