In article , Harold & Susan Vordos says...

In other words, laid-off folks don't buy much of anything.

Jim

I'm having a bit of a struggle coming to terms with your statement above.
Isn't that exactly what I've been saying right along? What I've proposed
is folks coming to terms with their inflated incomes and settling for pay in
keeping with its value.

Ah, "value."

I think we're talking about the same thing, but you are
approaching it from the ground up, saying that workers
should take voluntary pay cuts.

I'm approaching it from the top down - saying that
if companies move all their operations overseas, and
fire all the US workers, the *market* for their
goods and services (those same individuals who
used to work for the US companies) will basically
dry up.

At your end you see wages being depressed, because
of the glut of unemployed workes. At my end, I see
prices being depressed, because nobody want to by
the cheap stuff the companies try to import.

Kinda looks like deflation, and depression to me.

Jim

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