The reality is more complicated. Wages tend to be sticky downwards, therefore the main way to dig a country out of a balance sheet recession is through currenc

The reality is more complicated. Wages tend to be sticky downwards, therefore the main way to dig a country out of a balance sheet recession is through currency devaluation, which forces a haircut through other means. It's how Canada and Germany rebounded in the 90s. Yes, this hurts the poor and middle class, as inflation does (though it also can help - people that bought houses in the 70s effectively got a discount), but unemployment hurts more.