another Krugman blog comment
This one is "awaiting moderation," so might disappear if I don't note it here:
Retroactive wage deflation is already a reality for households and individuals who have significant debt.
Payments continue at the same rate for houses which have dropped in price, reducing the ratio of hours worked to capital value gained.
Credit card companies are methodically increasing interest rates on existing debts, reducing the ratio of hours worked to value goods already purchased.
Even if the amount on the paycheck stays the same, the effective wage is reduced for the majority of Americans, debtors that we are.
Retroactive wage deflation is already a reality for households and individuals who have significant debt.
Payments continue at the same rate for houses which have dropped in price, reducing the ratio of hours worked to capital value gained.
Credit card companies are methodically increasing interest rates on existing debts, reducing the ratio of hours worked to value goods already purchased.
Even if the amount on the paycheck stays the same, the effective wage is reduced for the majority of Americans, debtors that we are.