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Originally posted by Japher
If everyone stops spending wouldn't that increase prices, make more people lose jobs, and hurt the economy more? I won't raises prices (just the opposite, in fact), but yes, it will raise unemployment, leading to less spending, etc. That is the inherent contradiction in capitalism I've been trying to explain to you folks for years. This is why capitalism not only does have crises, but must have crises.

But people working extra jobs to make up the shortfall won't help (well, it may help the individuals who have the added income, but society as an aggregate won't notice) when unemployment is rising. It just means that the people who have more than one job are scabbing on the unemployed.