When economic conditions turn uncertain, consumer behavior shifts dramatically. People tighten their belts, prioritize savings, and pull back on spending. What's the real impact? A slowdown in growth rates.

This dynamic matters more than many realize. If the broader environment pushes households toward caution and higher savings rates, aggregate demand naturally contracts. Businesses see reduced revenue. Investment drops. The economy loses momentum.

It's a classic feedback loop: environmental stress → behavioral change → financial restraint → weaker economic performance. The question isn't whether this happens, but how severe the slowdown becomes when collective risk aversion kicks in.