| pokoko said: The wealthy will sell to the wealthy. They're going to have all the money, anyway. |
This only works for luxury goods, services, and investments. Any industry that depends on selling a normal or inferior good (the majority of industries and GDP) is going to be hit hard. The wealthy might buy bigger yachts or mansions, but they're not going to be buying more bread, milk or smartphones. These things only have a limited capacity to "get better", so you probably won't see much investment in making luxury versions of them. Likewise, you can only have so much production of yachts and mansions before those markets become saturated and the values of these "assets" stall.
The wealthy also tend to under-consume for their wealth-share, instead hoarding their wealth. This especially becomes true during a deflationary spiral.
