Robin: When a region' s economy is faltering, many people lose their jobs. As a result, spending on consumer goods declines, leading in turn to more lost jobs and a worsening of the economy. Eventually, the economy becomes so bad that prices collapse. the lower prices encourage people to increase spending on consumer goods, and this higher spending results in economic improvement. Terry: People cannot increase their spending if they have no jobs and no money for anything other than basic necessities
price collapses cannot lead to economic improvement.
Even people who do not lose their jobs spend less in bad economic times and thus have savings available to spend when prices collapse.