RE: Force Companies To Pay More And Jobs Are Lost

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If companies pay less to its employees then we get in a vicious circle as workers consume less. This has been explored the past recession with awful results for low middle class people here in Europe, here was called austericide (from austerity + suicide).

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If companies pay less to its employees then we get in a vicious circle as workers consume less.

Another misguided notion.

Before a lowering of consumption takes place, on a mass scale, deflation hits means that less pay can equate to lower prices.

Academics love to create simply models for what takes place while overlooking the fact that economies are holistic in nature.

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