Why is an economic depression bad for consumers even though prices are cheaper?
In: 88
Most of the answers here have missed the point. We must first ask WHY prices are low. Prices are determined by supply AND demand. Meaning that prices can be low because of low demand or because of high supply.
In a depression, prices are low because there is low demand. People are poor, therefore are spending less, which causes prices to drop. The lower prices are nice, but by definition can’t make up the difference.
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