There are a few things happening simultaneously.
A lot of people have seen pay freezes that mean their pay is not going up whilst things like fuel, utilities, even food, are going up quite significantly. In a nutshell, people's disposable incomes are going down as their outgoings go up. People are also losing money on houses instead of making money so, even if they can sell, they aren't getting those windfalls we had all got used to. I have less gigs as well so any 'top-up' money from gigging is much reduced. Things I used to be able to pay cash for quickly (new tyres, car repairs, materials for DIY jobs etc) now get stuck on credit cards and hang around for months.
And we all have gear we can't sell. I would love to buy Beedster's AI gear but the cupboard is bare until some more work comes in. All very frustrating.