Reply #4: You're right about the distribution channels shrinking.

[caseymoz]

Some things to be noticed in a Depression:

Prices will be low, which is good only if you're employed and can find somebody to buy from.

Quality will diminish terribly as industries set their sites on meeting lower prices.

Unemployment will freeze at a high level, because manufactures usually can't make a profit at the prices people could afford to pay.

Meanwhile, the unemployed can't afford items that might be sold even at the low prices. Hence, nobody can buy anything till they are employed, and industries can't afford to hire people until more people are buying things. It's not a vicious circle, it's more like an infernal knot.

Last note: the Internet might act as a replacement outlet in this Depression. Yes, I'm calling it a Depression already.