If firms cannot cut wages, then as falling prices squeeze profits, they will cut jobs.
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If that happens, selling will beget more selling, and falling stock prices will cut investment, consumer spending (via the wealth effect), and tax receipts.
The quality of service, traditionally the pride of department stores, is falling as they scramble to cut costs by reducing staff.
Last week, citing falling soda volumes, Bernstein cut its recommendation on Dr Pepper's stock to hold from buy and trimmed its earnings and share-price estimates for Coke and PepsiCo.
Exports of coal, copper and other minerals from Utah, Wyoming and Montana are beginning to slip because of falling demand in Asia and cut-price competition from Russia and China.
Many economists were worried last year that the wealth loss from falling share prices would force consumers to cut their spending.
"If confidence is falling and interest rates have already been cut to 40-year lows, there are not many tricks left in the bag, " he says.
Walters had a health scare in January when she suffered a cut on her forehead after falling on a stair while visiting the British ambassador's residence in Washington.
Several Nighthawks players and coaches were veterans on the NFL. They shared with me some stories of cut days in the NFL. They told me about cut players openly weeping or falling to their knees and begging to stay on the team.
The Time Inc. magazine division began to lay off about 6 percent of its global workforce of 8, 000 last week, as it prepares to do more to deliver its content on multiple platforms and devices, and cut costs in line with falling print subscription and ad revenue.
Partly, this reflects the falling cost of distribution, as digitisation has cut annual operating costs.
Deflation amplifies the negative impacts of an economic downturn as falling prices are market signals to producers to cut back production.
In an attempt to stimulate businesses, corporation tax will be cut to 24% from April, falling to 22% by 2014.
Meanwhile, more hawkish members of OPEC, such as Venezuela, are calling for a cut in output to stop oil prices falling further.
The company cut 200 jobs in April 2009 because of falling demand.
They found a clear difference between job cuts implemented as part of a strategic restructuring and those done to cut costs in response to stockmarket disappointment at falling profits.
ECONOMIST: Corporate downsizing in America: The jobs challenge | The
If the homes all around you are headed to foreclosure and prices are falling like a stone, lenders will be eager to cut their losses and agree to a short sale.
Since the exchange rate is a binary issue, not distorted by an overhang of global liquidity, we take euro-dollar stability and falling gold as rejecting the idea of a Fed rate cut.
Last year, Peugeot announced a programme to cut its costs by 1bn euros in response to falling sales, including the closure of one factory.
Spending on social services has been relatively protected, falling by 3.8%, and education spending has been cut 7.3% per person.
BBC: Local council budgets squeezed 'until at least 2020-21'
Sharp, which has struggled amid falling sales and a rising yen, has had its credit rating cut to "junk" status.
BBC: Sharp issues survival warning as it forecasts huge loss
In contrast, if prices are falling by 2 percent, then the same 2 percent real wage cut translates to a nominal wage cut of 4 percent.
The falling price of renewable energy is starting to offer firms another way to cut costs.
What is beyond doubt is that after years in which child poverty increased, child poverty is now falling and one of the budget measures that Gordon did was effectively a tax cut for middle and lower income families with children.
BBC: News | BREAKFAST WITH FROST | Interview with Prime Minister Tony Blair
European carmakers are expected to continue to cut jobs in response to terrible market conditions in Europe, where sales have been falling fast to levels not seen in two decades.
But not only will homeowners face falling values, higher interest rates will mean higher mortgage payments just when slowing economic and profit growth may cut into wages.
It wasn't just because the cut in VAT was such a misguided way of stimulating demand when prices in the shops were already falling.
What was most impressive was how both companies cut costs rapidly enough in 2009, so that each had a respectable year, even with revenue falling about 20%.
Rodger Holmes, chairman of the Gloucestershire and Herefordshire branch of the IWA said grass around the lock is no longer being cut, there are potholes in the car park and the lock's winding gear is "falling apart".
BBC: Canal charities in Gloucestershire lock maintenance row
He said corporation tax would be cut more than expected from next month, to 24% rather than 25% as planned, falling to 22% by 2014, something he said would be "an advertisement for investment and jobs in Britain".
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