[JumpCrisscross]

Economics, like physics, scales messily. If the whole world decided to save everything for one year starting today, the economy would free fall. Since nobody is consuming, nobody need produce. Factories grind to a halt and deteriorate, social bonds and casual knowledge fade, and the world returns a year later materially worse off.

[Houshalter]

Yes and it should. The economy isn't a static thing. It should adapt based on demand. If suddenly demand went down, then prices would fall until they were low enough that the remaining supply can be sold off.