In these recessionary times, everyone is saving. Small company A saves on its a orders from the high-quality and medium-cost company B and chooses to buy from small company C. Then B has to save on its employees who become unemployed and can no longer buy from A, B and C. So A, B and C have to save further too, the circle is closed.
Or company A forces its employees to agree to pay cuts. Then the employees with their new low wages cannot afford to buy as much from A anymore and so A's profit still decreases.
Miserliness deceives wisdom. If companies are to make profits, citizens must be able to afford to consume.