It Doesn't End There

In yesterday's post, I noted that "It's Not Just Consumers Who Are Making Adjustments" -- retailers are also adapting to a more frugal reality.

But it doesn't end there. Firms of all shapes and sizes are rethinking business models on the assumption that the developments of the past year are not just a temporary interruption of the long-running economic boom.

In the following video, "The Business Slowdown Gets Serious," BusinessWeek reports that the "recession focus" is moving away from the consumer. As they see it, "companies are not only slashing payrolls. They are beginning to make big cuts in capital spending and inventories that will weigh heavily on economic growth this winter."

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Comments

[Purple]

An economic expansion based on a massive accumulation of debt will rarely have a happy ending. At some point, wages have to increase for the average person if an expansion is to be sustainable.