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Falling Wages Compound Economic Woes

Without new stimulus, US faces Japan-style slump: Krugman

By Jason Farago,  Newser Staff

Posted May 4, 2009 8:00 AM CDT

(Newser) – From bailed-out automakers to newspapers facing cutbacks, companies across the US are slashing wages, and employees—even those with unions—are sitting still for it. While cuts may look like a good alternative to unemployment, but they're more harmful than they appear, writes Paul Krugman...   Read full story »

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