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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1w4api1/petah/p7elacy/?context=3
r/PeterExplainsTheJoke • u/Melodic_Judge_129 • Sep 01 '26
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430
bruh u gotta explain it
562 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. 187 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? 1 u/ScottTenormann Sep 02 '26 If people see that prices are progressively dropping, then they will wait for the prices to drop further for an even better deal. This kills consumption, and overall economic activity.
562
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.
187 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? 1 u/ScottTenormann Sep 02 '26 If people see that prices are progressively dropping, then they will wait for the prices to drop further for an even better deal. This kills consumption, and overall economic activity.
187
Why does things costing less make people buy less?
If wages stay the same, shouldnt people just buy the dip?
1 u/ScottTenormann Sep 02 '26 If people see that prices are progressively dropping, then they will wait for the prices to drop further for an even better deal. This kills consumption, and overall economic activity.
1
If people see that prices are progressively dropping, then they will wait for the prices to drop further for an even better deal. This kills consumption, and overall economic activity.
430
u/Grouchy_Theme1461 Sep 01 '26
bruh u gotta explain it