If every country is in some sort of recession, shouldn’t the economy adjust accordingly as opposed to falling even more?
In: 53
If you were thinking of buying a new car but you knew it would be 10k cheaper in 1 month, are you going to wait or buy now? What about food? In 1 week food is going on sale. You waiting to buy or stocking up right now? The problem with recessions is things go on sale so people wait to buy, and companies need to make sales so they lower prices more and it’s a game of chicken of who can survive longer.
Also this goes for companies, so the grocery store isnt going to have money to pay employees so they lay employees off.
Now these employees have no money so they cant buy groceries
Also I’m not 100% sure here but theoretically it makes sense
People have no food and need to feed their family so they steal, so companies have to start paying insurance, insurance starts losing money so they have to raise rates, companies cant afford insurance so when they get broken into they have to pay out of pocket causing them to go under, so now we have no where to buy so people also see making a grocery store seem like a risky investment
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