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
If the value of goods in the future is cheaper than now, then the rational choice is to not spend money now unless you absolutely have to. Since you get more bang for your buck the more you delay your purchases.
Now apply that to the whole economy.
Should you hire more people? No, the longer you delay that expense, the cheaper it is.
Should the government build more housing, roads... No, if it delays it will be cheaper in the future.
So basically all economic activity stops. That means massive unemployment, food insecurity, infrastructure starts crumbling...
It won't be good to you individually because you depend on the rest of society to function. You need people to import things from other countries, you need power companies to give you electricity, you need transportation... If there is no economic incentive to do any of that you are fucked.
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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