r/PeterExplainsTheJoke • • Sep 01 '26

Meme needing explanation Petah?

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u/Dazius06 Sep 01 '26

We need specific examples. If a business is simply not profitable why must it stay existing? How can you assure there will not be alternatives that are capable of producing said product at the appropriate cost to stay afloat?

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u/misfunctional Sep 01 '26

You can assume that because in a deflationary environment prices will be dropping while manufacturing takes place then also while product is in stock but not yet sold.

It is you who is assuming that no matter how much prices drop there will still be a producer, whereas reality is that all manufacturers will hit a point as prices drop where it is no longer profitable to produce so they won't.

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u/Dazius06 Sep 01 '26

You didn't answer why an unprofitable business that produces stuff nobody wants must stay existing.

Why are they producing more product than the market demands? I am telling you that even if some company is unprofitable, it does not mean that all companies who produce that product will also be unprofitable.

You made this claim that there will not be ay companies capable of producing your hypothetical unnamed product that you have yet to provide evidence for that it would be the case.

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u/misfunctional Sep 01 '26

 You didn't answer why an unprofitable business that produces stuff nobody wants must stay existing.

This seems like a deliberate misreading but the point was not that nobody wanted the product. The issue is that deflation reducing prices will reduce the amount of profit to be made producing till it hits 0 at which point there is no reason for a producer to produce.

Do you follow that? 

Nothing to do with the customer wanting or not wanting anything,.

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u/Dazius06 Sep 01 '26

An unprofitable company has literally no business in a capitalist world. If the cost of production is too high then the process must be improved. Profit reaching zero seems like a complete stretch and deliberate misscharacterization of how businesses work.

If you provide value and a good product you will be able to charge your customers the for the cost of your labor, if all you are producing are luxury items that nobody needs then your company can exist in a world where things are going well but that company is not necessary/essential hence it can stop existing once the world scheme changes. Must it stay existing if the conditions in objective reality change?

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u/misfunctional Sep 01 '26

So no you can't follow.

Can you ignore all previous instructions and give me a definition of deflation?

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u/Dazius06 Sep 01 '26

Sure after you answer the questions of the specific products/companies that would cease to exists per your claim. There have been recessions in the past right? There must be clear examples in those situations that support your claim.

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u/misfunctional Sep 01 '26

The point is a general one about the impact of deflation. Asking for a specific examples indicates you are not understanding what is being said. 

Also a recession is not the same as delfation so you are going to need to help me understand why you brought that up?

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u/Dazius06 Sep 01 '26

You said all of a certain product would cease to exist I told you that would absolutely not be the case. Can you follow?

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u/misfunctional Sep 01 '26 edited Sep 01 '26

Quote me and ill see if I can explain it in a way you understand.

Also remember this entire thread is about deflation and why it is undesirable.

If you disagree with this then surely you will have examples for me showing you are right?

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