If people can’t / don’t spend en masse and therefore cause businesses to collapse on a large scale, meaning they aren’t paying staff, where does all the money go?
And where do governments borrow money from?
[Edit] en masse not on mass.
In: Economics
Money is just a stand in for goods and services. While the physical dollars are still around somewhere, because people aren’t working, the goods and services aren’t being made, and thus millions of dollars worth of value is never being made. The dollars as a result are not being pushed around, so that value is just gone. Poof.
Latest Answers