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this post was submitted on 26 Feb 2024
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This is an over-simplification, but consider this:
A farm has to sell their produce/livestock below their cost-price, because demand has dropped and the resulting over-supply has caused a race to the bottom as producers try to recoup as must value as possible.
This leads to less funds available to produce the next round of crops (further negatively impacted by economies of scale), cover operating expenses and pay staff wages.
People lose their jobs and livelihoods, causing a negative feedback loop resulting in less demand overall.. repeating the cycle. The Great Depression of a century ago was an example of a similar scenario.
How's this for an over simplification: we should find the guy who got the big bag of money that started the whole thing open that bag.