And who will survive if nobody produces anything for anybody to consume or horde? Imagine that the farmers of the world decided not to produce anything for us to eat and instead only horde stuff.
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.
Oversimplified. 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.
