• @Zorque@lemmy.world
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    23 months ago

    You know in what form those paychecks generally come in? Cash, so their paycheck is now literally worth more without wage increases (which aren’t horribly stable for those generally loving paycheck to paycheck).

    • JWBananas
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      63 months ago

      If they still have a paycheck, sure. But historically, deflation leads to unemployment.

      • @hark@lemmy.world
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        12 months ago

        You’ve got that backwards. People get laid off, can’t buy things, then prices go down because demand is lower.

        • JWBananas
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          12 months ago

          It’s not just consumer spending that influences inflation,/deflation but also institutional spending. The consumer price index is a lagging indicator. Decreases in institutional spending precede unemployment and the eventual reduced demand for consumer goods and services. And increases in the fed rate (and/or other forces which cause the cost of borrowing money for institutions/investors to rise) generally precede that.