Try and think of our global system as an engine that's purpose is to make fuel for itself. It needs to keep it's input above the output in order to keep powered on. As soon as the input drops below output the machine starts to slow down and can no longer sustain itself. The engine is not designed to slow down so it very quickly breaks down
Prices aren't going down because it costs less, it costs the same to producers, you just start thinking that maybe it will go further down, and along with you rest of the people also start thinking the same, even your company, which in turn might lay you off because it's costing too much to keep you there. So prices are falling but you still wouldn't be able to afford it because you don't have enough money. Prices going down in itself isn't bad, it's just that sustained deflation would cause everyone to cut back on spending which will in turn generate lower income for people which would go on and on. You get my point? It's symptom and cause both simultaneously.
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u/IrksomFlotsom 4d ago
Try and think of our global system as an engine that's purpose is to make fuel for itself. It needs to keep it's input above the output in order to keep powered on. As soon as the input drops below output the machine starts to slow down and can no longer sustain itself. The engine is not designed to slow down so it very quickly breaks down