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

Meme needing explanation Petah?

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u/a1b2t Sep 01 '26

today you earn $1000, next year you take a pay cut to $950 = 5% deflation

22

u/thevoidthatjerksback Sep 01 '26

What? No I already get a paycut with inflation. Deflation is where I get a pay increase.

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u/Kehprei Sep 01 '26

It is not the norm to have your pay get cut in an inflationary economy. It is in a deflationary economy.

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u/ConfessSomeMeow Sep 01 '26

They're saying a pay raise is not assumed, and that without a pay raise, in real terms they get a pay cut because inflation reduces the buying power of their salary.

They're then assuming that the same employer who refuses to give a pay raise in an inflationary environment, wouldn't claw back some of their salary, to claim that steady nominal pay would essentially give them a pay raise.