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That is wage deflation in action right there in California!

Another example in the UK is City workers and other jobs with relatively high bonuses being slashed to zero so people only get a basic wage.

Yet another example is builders, plumbers, and other tradesmen who are having to accept lower pay to get what few jobs are on offer.

When wages deflate that always leads to a depression because it makes personal debt bigger in real terms. That forces people to cut spending to subsistence and that causes the economy to collapse.

Just wait and see what happens when commodity prices collapse. Assets, commodities, and wages falling in lockstep is a deflationary spiral in my view.

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  • 401 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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