To: RockyMtnMan
No. If people lose their jobs en masse, prices for all products will sink substantially.
When there is lower demand (since everyone has lost their job and can't afford anything), and equal supply, prices go down. Eventually, they reach an equilibrium at a lower level.
Eventually, wages will have to go down to match prices companies can get for products, and when that happens companies will be able to afford to hire more people, etc.
D
To: daviddennis
You mean like Music? Low demand does not always equal lower prices, only when the producer becomes desperate to get his investment back. In the short run they tend to raise their prices because the margins are to thin to be acceptable. That's about the time they stop producing the widget altogether because there is no market for it.
You mean hire more offshore people.
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