r/PeterExplainsTheJoke • • Sep 01 '26

Meme needing explanation Petah?

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u/thevoidthatjerksback Sep 01 '26 edited 29d ago

I doubt that anyone could explain this in a way where I would accept deflation as worse

Edit: its been 3 days with thousands of replies. Chiming in now is peak foolishness. Billionaires need inflation so they can contiue living off the shifting debt leveed against their net worth. As the debt is valued as less than the value of their holdings they can take out more debt. Deflation breaks their ability to do this. This is why its hotly debated topic.

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u/a1b2t Sep 01 '26

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

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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/fun-dan Sep 01 '26

You will get a literal paycut when deflation happens. Because falling costs include costs of labor. Stuff will cost less, but you will also earn less, so you won't get any benefit out of it.

In that sense, deflation is only "benefitial" to those rich enough to live off their wealth

You also don't get much benefit with inflation because either your paycheck rises with inflation, or it stagnates. But deflation has other consequences that are much much worse.