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[nimblebear]

Probably the worse part of all the over capacity in many sectors, and this economic crisis, is the affect on wages for people who have jobs, or for people re-seeking jobs.
Thsi massive compression on wages is going to completely re-define the houses people can afford, or not afford, where they live, how much they consume and basically force them to adopt a completely different standard of living. in 2004 people refinanced and extracted $900 billion out of their ATM Homes, and used to subsist on an overreaching standard of living then. Well that party is over for sure, but imagine all of the people who now need to keep their job, or are looking for a new one. If all these people are accepting jobs as much as 50% below what they were making, imagine the downward pressure that places on every who has a job in most industries.


To Wit:

Cut My Pay, But Please Give Me A Job

CNNMoney has an article that is certainly a part of the ongoing deflation debate.
Please consider "Cut my pay ... please!"


With unemployment as high as 9.4% and job prospects scarce, job seekers are willing to accept as little as half of what they were making before, if it means finding a job.

In a recent survey, 65% of out-of-work respondents reported willingness to accept wages up to 30% lower than their previous compensation. And, 3% and 4%, respectively, said they would accept up to 40% and 50% of prior wages, according to the 2009 Annual Career Fair Survey released by Next Steps Career Solutions.

"I see it every day," said Jay Meschke, president of EFL Associates, a division of professional services company CBIZ. "People are out there accepting positions as much as 50% below what they were making before."

"If it is a choice of putting food on the table, paying for a kid's school expenses, or attempting to get on a healthcare plan -- many people are flat out accepting jobs well beneath their former market values," he said.