Death spirals do not happen in economics. For every action and situation, economic forces work so as to find a new equilibrium. Now, mind you, many folk may not LIKE that new equilibrium point, but the system will find a new balance point... IF it is allowed to. We do get death spirals, but only when governments impose idiotic rules and benchmarks that prevent the natural economic forces from doing their job. The problem, as is almost always the truth, is the government intervention, not the economics.
these liberal, socialist actions are the death spiral