00:01
So the basic answer is that the real value of the farmer's debt increased.
00:05
That's it.
00:06
So think of inflation, right? you have some money and now inflation happens.
00:11
Prices go up.
00:12
Your money is worth less.
00:14
But now the farmers are in the opposite situation.
00:17
They owe people money and prices have gone down.
00:19
That money they owe is worth more, right? and we can make this more concrete by looking at an example, right? suppose these farmers borrow, say, $10 ,000.
00:29
And crops sell for, say, let's say, $5 each, right? maybe that's a ton of crops back then.
00:40
To repay the debt, repay requires 2 ,000 crops, right? that's how many crops the farmers going to have to grow to be able to repay the debt...