Pay cuts put the economy into reverse gear

'30 years of hurt' went the famous football song from Euro 96. The same might be said about the income distribution trend and wage stagnation in the UK, with many workers earning less today in real terms than in the 1980s since when the proportion of the workforce in low paid jobs has doubled. Stewart Lansley writing in the Guardian spells out these facts and concludes that a continuing squeeze on pay 'is merely likely to prolong the crisis, while opening an even wider pay gap and taking Britain further down the road of a low-paid economy'
http://www.guardian.co.uk/commentisfree/2012/aug/06/squeezing-pay-prolong-uk-economic-pain