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Falling prices mean falling profits, meaning falling incomes and rising unemployment.
This can unleash a vicious spiral of falling incomes, asset prices and rising real debt.
Beyond that, falling wages mean falling incomes, while debt stays the same.
In fact, even private spending will shrink, because of falling incomes.
It led workers to pile on debt to supplement falling incomes.
Up to a point ReprintsFaced with falling incomes, many post offices are closing.
"And while housing prices have moderated, they really haven't tumbled enough to account for falling incomes".
But falling incomes make it even harder for people to make payments on outstanding loans.
Over the past year much of the world has experienced falling incomes and sharply rising unemployment.
Domestic sales remain sluggish, and residents face a difficult job market, falling incomes and higher taxes.
Because economic downturns mean fewer jobs and falling incomes, they are painful for many families.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com