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So assuming consumption doesn't increase in step with deflation, you'd have to give employees pay cuts. That would be very strange indeed.
by sosuke 12y ago
So assuming consumption doesn't increase in step with deflation, you'd have to give employees pay cuts. That would be very strange indeed.
- mikeyouse 12y agoExactly. Unfortunately for those employees, their mortgages, student loans, and credit cards are all based on nominal amounts so suddenly they're earning less to service the same amount of debt.