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There is no question that Greece is in for several years of slumping incomes, slower growth and social strife as the government cuts spending to reduce its budget deficit.
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Falling real income, slumping share and house prices and tighter credit all cast a cloud over consumer spending.
The country's economy is struggling to recover from slumping investment and reduced income from tourism, even as workers demand higher wages.
Figure 1 from this paper -- a paper that influenced a lot of people in this debate -- provides clear evidence of acceleration in import penetration from China over a period when middle-incomes were slumping pretty badly.
The difference is that American firms reacted by slashing employment, whereas in Britain workers were willing to see their real incomes slump.
Then it jumped to prime mortgages as the recession and slumping stock market slashed the incomes and assets of those who really could afford to own houses.
Britain's younger workers have few funds in the bank and are vulnerable to higher interest rates following a prolonged slump in incomes, according to a leading thinktank.
Furthermore, the price declines are seen as a contributing factor in a long slump in incomes, which, in turn, is prompting many Japanese to tighten spending.
Operating profit (income before taxes and non-operating gains or losses) was up 9% to $278 million, although net income slumped 62%, to $22 million, because of higher taxes and losses related to exchange-rate hedging.
The median income slumped.
The company said net income slumped to $2 million, or 1 cent a share, from $69 million, or 34 cents a share, a year earlier.
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