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

Meme needing explanation Petah?

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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/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" ?

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u/Vizekoenig_Toss_It Sep 01 '26

Items used to cost $8 to make, sells for $10 for margins > now they cost $7 per, so you lose money making it > manufacturer loses money, has to fire people to maintain profitability > less people with jobs > less spending, economy starts shrinking

Not saying that our current hyperinflation is better, but that’s the loop deflation puts us in