Cratering demand generates an oversupply in something basic, like electricity or condos or electronics. Markets cannot adjust without amputating part of the production side, which hurts workers, which reduces demand even more. Some version of deflation has been plaguing Japan ever since its economic crash in the 1990s, and the European Union ever since the 2007–09 financial crisis, and it is probably already endemic in China, where increasing-production-at-all-costs is the state mantra.
