Demand destruction

Okay, kiddo, let me explain demand destruction to you like you're five.

Demand destruction happens when people don't want to or can't buy things they used to before. It's like when you get a toy and you love it so much you play with it every day, but then you grow up and don't like playing with toys anymore. That's kind of what demand destruction is, but for grown-ups and things they need or want to buy.

There are a lot of reasons why people might stop buying things. One reason is when the price goes up and people can't afford it. For example, maybe you love candy, but your mom only gives you one piece a day. But then the candy store raises the price, and your mom doesn't want to spend all her money on candy anymore. So, you get less candy and you're sad, but your mom still has money for other things.

Another reason people might stop buying things is when they can't leave their homes, like when there's a pandemic. You might love going to the playground, but if there's a lot of germs going around, your mom might not want you going out. So, you have to stop going to the playground and play inside or in the backyard instead. That's kind of like what happened with people during the pandemic - they had to stay home more and couldn't go out to restaurants or stores or traveling like they used to.

So, demand destruction means people stop wanting or buying things they used to before. It can happen for lots of reasons, but it's okay because people can adapt and find new things they like or need.