I suck at Economy 101

I still maintain that the economic crisis was due primarily because of the involuntary shrinking of everyone's belt because they were scared off by the economic failures they read about in the news and see on tv. There is no real actual crisis except everyone cutting down on everything, and some even jumping on the bandwagon to cut and save money as an excuse.

If you're a teacher, will you be affected by the economic crisis? MOE is just cutting salaries because they wanna save money and they wanna save money because they (as any company) are inherently trying to cut costs whenever they can. One might argue that the economy is global and even our town councils have investments that depreciate and cause them to lose money. But they are not supposed to invest more than a certain % of their funds in such investments. So what about the rest of it? Similarly, if MOE has such links to the economy, and they have ample funds left, why the excuse to cut salaries?

This economic crisis is a farce and the only ones benefitting from it are the companies (and organizations) that are crying foul. We need people to spend more so banks won't be so scared to lend more and that doesn't help if you cut salaries. You start doing that and you get MORE defaults in payments and don't even start on the layoffs. The whole vicious cycle goes on because of this.

It's just so ridiculous how things can escalate.