Why don’t we have income? No job.
Why don’t we have a job? Slowdown in consumer spending.
Why is there a slowdown in consumer spending? Reduction of buying power.
Why is there a reduction in buying power? The credit squeeze.
Why did we need credit anyway? Inflation-adjusted wages have been stagnant since the 1970’s.
Why are wages stagnant? Producers have sought to keep labor costs low, shipping jobs overseas and cutting prices.
Why is there so much pressure on producers to keep costs low? The consumer wants the cheapest product because the consumer is being squeezed by….STAGNANT WAGES!
Well why are wages stagnant? Cost pressures on producers. Why cost pressures? Stagnant wages… And down the spiral we go.
Everyone keeps asking, “Where’s the bottom?” There is no bottom. This is a fundamental restructuring of the economy. People are going to have to rely on one another more. Community is definitely part of the solution. Be thankful we don’t have to live like people in third world nations, where everything is shared.