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People would spend for food but save as much money as possible making the economy contract with demand in a depression. Hopefully the government would turn on t
by josephlord 14y ago
People would spend for food but save as much money as possible making the economy contract with demand in a depression. Hopefully the government would turn on the printing presses and step in as spender of last resort before the food ran out.
- jerguismi 14y agoPeople probably wouldn't do anything else than just buy that food, and wait for the world to end? LOL
- josephlord 14y agoOversimplified. This is an HN comment not a Economics paper. Discretionary spending reduced, borrowing falling leads to deflationary cycle with shrinking economy unless action is taken. I thought it would be obvious I didn't mean absolutely all spending will stop.