Reply #34: well Frodo [View All]

[UpInArms]

you just said it:

In the case where inventories explode while consumption is actually falling, you have businesses closing their doors. People get laid off, not because their job went overseas, but because there WAS no job - the company was gone.

so the doors are closing and the jobs are gone - there are no jobs for those people. Ergo - consumption falls.