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
I’m no expert but essentially the Fed creates and distributes the money. The government is basically taking loans against itself when they overspend on their budget.
As for lack of consumerism to drive company sales, the money obviously stays in the hands of the individual.
Latest Answers