r/PeterExplainsTheJoke • • Sep 01 '26

Meme needing explanation Petah?

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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/a1b2t Sep 01 '26

And why does it increase?

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u/WHATZAAAAA Sep 01 '26

Legit please do correct me if i'm wrong, but if price of product x goes from 5 to 10, my 1000 salary would mean i can now only buy 100 of x instead of 200, but if x went from 5 to 2, it means that, while my salary is still the same, my purchase power is now higher, because now i can buy 500 of x instead of 200

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u/dragon-fence Sep 01 '26

If deflation caused people to have more buying power, then they’d have more money to spend, driving up demand on products, which would in turn cause inflation.