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The Mechanics of Deleveraging: Why Cutting Spending Backfires
When the economy hits a wall, the standard advice to spend less actually makes the problem worse. This paradox of austerity causes incomes to fall faster than debts, turning a simple downturn into a crushing depression that erases perceived wealth. As governments scramble to fill the void through wealth redistribution, the resulting social friction can fundamentally reshape a nation's political identity.
Jan 27, 2026