Wage cuts for lower ranked employees is a simplistic and ineffective method of dealing with a recession because it will cause a downward shift in aggregate demand.
Contrary to the belief of Steven Pearlstein, wages are not the cause of problems in the economy because that money is used to buy goods and services.
There seems to be a troubling belief that labor should be free. Ultimately, opinions like Pearlstein’s lead to arguments for slavery. The United States already tried that and the practice of slavery is contrary to the Constitution. That there is still argument over this fact is disturbing.
Also, the top 1 percent of wealth cannot be protected at the expense of the other 99 percent. This prescription is a recipe for societal dysfunction and economic failure.