February 26, 2009

This article is part of a syndicated series about deflation from
market analyst Robert Prechter, the world’s foremost expert
on and proponent of the deflationary scenario. For more on deflation
and how you can survive it, download Prechter’s FREE 60-page Deflation Survival eBook,
part of Prechter’s NEW Deflation Survival Guide.

The following text was originally published in Robert Prechter’s
February 2009 Elliott Wave Theorist

By Robert Prechter, CMT

During depressions, many businesses make a fatal mistake: They
lay off employees. Some businesses have no choice; if the product
or service is related more to quantity than quality, then perhaps
there is no alternative. But many businesses are far better served
by keeping their employees and reducing compensation. That way,
they can continue to serve customers with full quality and stand
ready to lead the competition when the next economic expansion arrives. Read the rest of this entry »

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