the economy doesn’t shrink, but the demand for human workers depends on the rate at which the economy grows, and if that slows down, so does demand for human workers and that means that by the rule of supply and demand, the prices (wages) for human labor go down. and that’s what people are feeling as economic hardships right now.
I think it’s something like this:
the economy doesn’t shrink, but the demand for human workers depends on the rate at which the economy grows, and if that slows down, so does demand for human workers and that means that by the rule of supply and demand, the prices (wages) for human labor go down. and that’s what people are feeling as economic hardships right now.