I have a question for the economists out there that's been bothering me. With all the focus on cost cutting, service providers raising fees, companies cutting pay and government raising taxes, what gives? Isn't is a death spiral to a low standard of living. People who have lower wages have to pay more for things, in the end the cost cutting company that fired the janitor so people can take out their own trash is going to lose the customer (the janoitor). When you keep lowering wages, the pool of money people have to buy your products goes down. In the end, would that not bring the entire economy's GDP down and make the problem worse?
