Trickledown Downsizing

[jeffrey]

In September, Cathy DeVore, a real estate agent in Larchmont, N.Y., whose business has been at a standstill lately, began taking gradual steps to lay off her longtime nanny and housekeeper. Aware that the woman supports a son, a mother, and a niece in Dominica, and worried for their well-being, Mrs. DeVore wanted to make sure her employee found another source of income before losing her $500-a-week salary.

“I told her I was worried about her job security with me, and found her an additional day of work with my sister, and told her that she should start saving because I was worried about having to cut her back more,” Mrs. DeVore said. “In October I started a no-overtime policy; in November I told her that as of Jan. 1, I am cutting her back to 20 hours a week, and that as of June 30, I probably won’t need her at all.”

Mrs. DeVore said that both she and her employee (who declined to be interviewed and asked not to be named) had marveled at the speed with which the financial crisis had hit home. “We talk about the trickledown effect of Wall Street, how my selling less houses is going to affect her mother living in her hut in Dominica, which is crazy,” she said. “But her mother is going to get less sugar because she has less money to send home...

http://www.nytimes.com/2008/12/11/ga...domestics.html

[cptacek]

Trickle down economics is how the economy works, folks, on the way up and on the way down.