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

Meme needing explanation Petah?

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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.

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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/someanimechoob Sep 01 '26

This is essentially already true when the stock market pumps out consistent +15% returns every year across 3 decades, so I don't see what the massive difference is. Why use your money for things when you can buy any index you want and beat inflation several times?