What do you mean? Historically and logically that's how it works. Economics concepts are like physics, they are connected and logical. Deflation doesn't just happen in a vacuum, it's caused and affected by other things. Simply:
In the Great Recession a lot of people lost their jobs or got pay cuts, reducing available money to spend. This reduced demand, which drove prices down.
As a direct example, things like taxes on the rich that are larger than spending, combined with using some of that spending on things that have lots of jobs, like building high speed rail.
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u/notaredditer13 5h ago
Wages/incomes go down faster. The collapsing economy drives prices down. See the Great Recession.