The Boston Globe and Chrysler are trying to force huge wage cuts on its workers to try to survive. Sign of the Times. General Motors, the financial sector, and companies across America are trying to do the same. But that's better than losing your job right? Sure it is...better to have income than to not have income.
But there is a Catch 22 here. According to ________ prize winning economist and editorialist Paul Krugman, such wage deflation is very bad for the recovery. Those left with jobs simply don't have enough money to buy stuff at the store and fuel a consumer resurgence.
But that analysis is for the broader market. Certain sectors are mired in a Depression not a Recession. African American men, Baby Boomers, Auto Workers, etc. are more afraid of not finding a job then they are of losing one they have already lost. For them wage deflation is 100 %!!!
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