Distributing the downturn

The International Labour Organisation has forecast a rise in unemployment by 20 million world-wide, by the end of 2009. The Organisation for Economic Co-operation and Development (OECD) has forecast a loss of up to 10 million jobs within the OECD group of countries, and up to 25 million jobs world-wide between 2008 and 2010. However, would a strategy of cutting wages as opposed to cutting jobs in the face of this recession create the conditions for economic recovery? Dr Paul Kattuman believes it would.