So I was on the radio today, KJNO Action Line with Murray Walsh. 

So I want to explain the contraction of the consumer market.  I don't know why the best thoughts happen about 15 minutes after the microphone is gone. 

So let us say that there the USA has $100 of earnings per year and we have been spending $110 per year for the past several decades.  All of a sudden that $10 of spending in excess is no longer available, for whatever reason!  Now USA must contract its demand by $10 and in doing so a recession begins and many suffer in the economic dislocation.  In fact, the economic dislocation of some impacts the many who have also  been living beyond their means, contracting demand even more.  Now, where there was $110 of demand and only $100 of ability to pay;  assume the ability to pay remains constant (a generous assumption, most likely contracted) there is only $85 of demand or a contraction of nearly 25%.

Negative savings is eliminated.
Paying back negative savings from previous decades (national debt + state and local debt + consumer debt)
Actual savings

Those three things will significantly reduce consumer demand and society will experience the consequences, and they will not be pleasant.