On severe problem I see is that this argues at one point that overall price DECREASES across the board with subsequent wage decreases are actually a good thing. This is just absolutely wrong. First, the amount of labour performed in america has only increased while wages stagnated. That has been the root of many problems. So what this assumes is that capitalists are going to take the hits first while the workers reap the benefits of recieving lower wages as the value of products also goes down. This obviously just isn't the case, and I shouldn't have to explain why, but i'll briefly summarize by saying that the rate of inflation won't slow down nearly fast enough, so capitalists are gonna end up laying off workers and reducing wages faster than the price of the product falls in order to keep profit margins high. It isn't rocket science to say across-the-board pay decreases is a bad thing.
On severe problem I see is that this argues at one point that overall price DECREASES across the board with subsequent wage decreases are actually a good thing. This is just absolutely wrong. First, the amount of labour performed in america has only increased while wages stagnated. That has been the root of many problems. So what this assumes is that capitalists are going to take the hits first while the workers reap the benefits of recieving lower wages as the value of products also goes down. This obviously just isn't the case, and I shouldn't have to explain why, but i'll briefly summarize by saying that the rate of inflation won't slow down nearly fast enough, so capitalists are gonna end up laying off workers and reducing wages faster than the price of the product falls in order to keep profit margins high. It isn't rocket science to say across-the-board pay decreases is a bad thing.