Try and think of our global system as an engine that's purpose is to make fuel for itself. It needs to keep it's input above the output in order to keep powered on. As soon as the input drops below output the machine starts to slow down and can no longer sustain itself. The engine is not designed to slow down so it very quickly breaks down
Because it results in less people making products due to them no longer being profitable. This leads to less jobs. Which leads to less money for people to spend. Prices drop as no one can afford the old price. Less people make the product due to it not being profitable and so the loop continues.
That is the thought at least. The desire for profit drives creation which is the fuel for the economy.
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u/thevoidthatjerksback 8h ago
I doubt that anyone could explain this in a way where I would accept deflation as worse