haven't (e.g. legal drugs). In theory, as your wages are being
reduced, so are the costs of the things you have to buy. Your
neighbors make less money too, so when you go compete to buy that
house, you both offer less. It's called deflation, and when people
have borrowed all the cheap money they can, you'll see it in full
effect. When you call customer service, you're talking to someone
that makes $3/hr instead of $30/hr, and that, COULD reduce the price
of that service. Its a race to the bottom.


You're kidding again right? Have you bought gas, steel, lumber, etc.
lately? Cost of "things we buy" are most certainly not going down. The
price of steel has doubled as of 6 months ago and they are predicting
another increase. Aluminum prices are doing the same and gas prices are
expected to top 2.50 this summer. While all of this is happening, people
are still losing jobs to outsourcing and H1B imports.

When was the last time you saw the cost of a product or service go down just
because the initial cost for the producing company went down. It doesn't
happen very often. Generally, as the cost to produce goes down the price
either stays the same or goes up and the quality of the product or service
goes down. I can see this pattern in just about everything I buy. The
reason they outsource is to increase the bottom line. Reducing prices
defeats that.

I doubt you'll find many executives sitting around the boardroom trying to
figure out how they can sell their products cheaper.

Ross