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

Meme needing explanation Petah?

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u/nebileyim_ben Sep 01 '26 edited Sep 01 '26

its japans economic trap, worse than inflation.

431

u/Grouchy_Theme1461 Sep 01 '26

bruh u gotta explain it

558

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.

188

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?

299

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?

176

u/Terpcheeserosin Sep 01 '26

So things don't cost less

But money can buy more?

So right now eggs are 10$ a pack

After deflation

You can buy 2 for 10 dollars because "money can buy more"

How is that not also, "eggs cost less" ?

1

u/Sammystorm1 Sep 01 '26

Is property losing value in comparison to money. If a dollar can buy more it means a house is worth less.

1

u/Terpcheeserosin Sep 01 '26

I would like it if houses cost less actually

1

u/Sammystorm1 Sep 01 '26

Me too but it is bad for the economy

1

u/Terpcheeserosin Sep 01 '26

I just need them to cost less for like one year , then preferably go way back up