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by willcipriano 1318 days ago
More expensive credit to businesses leads to less investment and growth leading to less hiring leading to higher unemployment. Higher unemployment means some people won't be able to afford food and gas lowering the demand for food and gas.

That's the theory anyway, they don't say it in plain terms like that though.

2 comments

or it could mean people waste a lot less - we all know in the western world waste is gigantic
Easy to waste less of something you don't have much of.
Starvation because you can't afford enough food in the US is incredibly rare.
> Higher unemployment means some people won't be able to afford food and gas lowering the demand for food and gas.

People need food and gas to survive. They're not going to stop buying food and gas, unless they are dead.

Well the US isn't setup for it in most places but in larger cities it is possible although sometimes less convenient to take transit or bike, so I don't think people "need" gas to survive.
Even if you're not put fully out of work if you have less money you'll only take essential trips reducing gas demand even if you're somewhere without public transit at all. Same with food, less money means you'll buy cheaper alternatives that are generally easier to produce.

Just because something is 'essential' doesn't mean you'll always spend the same amount on it regardless of your economic situation.

I people are not on a fixed immutable diet and routine.

I would not put instant ramen and a steak in the same "food to survive" category.