Where does all the money come from and where does it go?

Question

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

Answer 1

the basic/generic answer to your super vague and broad question is that…… the flow of cash/money/current slows down. it still exists but it’s not moving either because people/businesses are spending less, have non to spend, and there is less people/businesses taking on debt.