Part 8/15:
A pressing concern is reduced aggregate demand. As unemployment spikes and incomes shrink, the economy's incentive to produce diminishes. With fewer people able or willing to spend, the cycle risks spiraling into stagnation.
However, sectors such as B2B (business-to-business) and government spending might cushion some impacts, shifting demand from consumers to institutions and public services.
The New Market Paradigms: On-Demand and Local Production
Looking ahead, we can anticipate a rethinking of supply chains and manufacturing:
- Local, on-demand production could replace global logistics, with 3D printing and local AI-driven factories producing goods instantly.