Why is an economic depression bad for consumers even though prices are cheaper?
In: 88
Stuff cheaper sounds amazing, until you realize that company can no longer employ people due to lower profit, which means people loses their job.
And since more people loses their job, they have less money to spend on things.
Which means business makes even less money, so they lay off more people.
You see how this cascades? Eventually it can results in multiple corporation going under, this could mean millions becoming unemployed, and monkey wrenching the entire economy. This is why Government steps in for bail outs, because you CANNOT afford to have so many people go out of job at the same time.
Latest Answers