Why is an economic depression bad for consumers even though prices are cheaper?

Question

Why is an economic depression bad for consumers even though prices are cheaper?

In: 88

Answer 1

Think of it like a car. When a car is on, it uses gas to move. The miles per gallon might be good or bad, but wouldn’t your miles per gallon be infinite if your car was off? Or if you didn’t have gas in the car? No.

An economy needs money to move (gas). When it runs out of “gas”, prices go down, but now, your car (the economy) doesn’t have any fuel to keep it moving.