When you have deflation, people save more money, or delay spending it, because their dollars will be worth more tomorrow; but this reduction in spending just ca

When you have deflation, people save more money, or delay spending it, because their dollars will be worth more tomorrow; but this reduction in spending just causes more deflationary pressure ("Undercut our competitors or we won't make any sales!"). This process is self-perpetuating and can get out of hand very quickly.