Keynes

One cannot get much more Keynesian than Noble Prize winnng economist Paul Krugman in his latest article:

Falling Wage Syndrome

Some excerpts:

"Whatever the specifics, however, falling wages are a symptom of a sick economy. And they’re a symptom that can make the economy even sicker."

"But if everyone takes a pay cut, nobody gains a competitive advantage. So there’s no benefit to the economy from lower wages. Meanwhile, the fall in wages can worsen the economy’s problems on other fronts."

"To break that vicious circle, we basically need more: more stimulus, more decisive action on the banks, more job creation."