If consumers delay non critical purchases, how is that bad? More money would flow into important things in society as a result and potentially less to things that probably arent needed on society (ie Angry Birds games, or selfie sticks). Those industries might go out of business and release more resources to the important ones.

You say it isnt doing "its job"? but thats not a real reason. cigarettes arent doing its job if its stashed away and not smoked.