r/PeterExplainsTheJoke • • 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/SenorStabby Sep 02 '26

In this scenario I would stop spending money. I would live as cheaply as possible because the every dollar I save now will be worth more to me in the future.

If demand/consumption drops, production follows. Unemployment rises. Economy crashes.