Maybe it's not really so bad?

The Coyote points out that redundancies are happening faster than drop in output, so he thinks at least part of the crisis is anticipatory behaviour.

Another possibility that occurs to me, is that the credit crunch is a pretext for businesses to become more efficient and cut out deadwood in a way they'd long been planning to do anyway.

Time Management [Guest post by Paddington]

For decades, much was made of the fact that American workers were the most productive of the Western world. Business articles derided the 35-hour work week of the French and Germans.

However, about 10 years ago, there was a study that showed that the French and German workers were much more productive per hour.

This supports my long-held belief that a typical worker averages 6-7 hours of productive work per day. Give them a short-term project and they will work harder and faster, but be less productive afterwards. Tell them that they are going to work overtime, and they will not work as hard in the regular day. Presented with too much work (for them), many will actually do less.

Realizing this is one of the things that has made my job (university teaching) better. I could do my work in less time, so that I had time for myself and my family, rather than twiddling my thumbs at my desk for 8 hours.

In short, people need time to goof off and socialize, and it makes them work better.

Bide-a-Wii

The West is worrying about indebtedness and global competition, and China is devaluing the renminbi to maintain its trading advantage.

It's time for electronic warfare. Not hacking into the military system - that's so obvious, and it was so uncharacteristically direct of the Chinese to do it. No, I think the counterattack is through computer games.

Fund the provision of PSPs, Xboxes, Wiis and a host of absorbing games (e.g. Morrowind, Gears of War) as pseudo-benevolent gifts to bright young Chinese kids. With any luck, the effect will be the same as here: early, heavy adoption by the ASD/OCD types who might otherwise become the core of the mathematics/engineering/science elite that keep the rest of the population warm, well-fed and protected against disease.

If that doesn't work, only power cuts can save us.