and
2. Mass paying down of debt may not be the best thing to generate demand during a demand crisis.
Yeah, but is it worse than continuing to build up household debt in order to alleviate the pains of a demand crisis?
If disposable income goes down, then (all other things being equal) the ratio of household debt to disposable income would go up.
and
2. Mass paying down of debt may not be the best thing to generate demand during a demand crisis.