I am a contractor at Microsoft right now subject to this pay rate decrease. Although I have my opinions about why it is happening, and what should be happening instead, I think more interesting is what the immediate effect of this will be. In my case, I cancelled several services I pay for in order to absorb the hit to my income and will be increasing my W-4 deductions to maximize my current income (up to my allowed amount) in favor of decreasing my tax return next year (here's to hope).

But, I cancelled Netflix who licenses Microsoft's streaming video technology. I cancelled Gamefly who previously rented me Xbox 360 games. I will be providing less revenue through withholding to the federal government. There will be less discretionary spending and less revenue provided to my local and state government, all of whom need it just as bad as we do right now. All of those organizations rely on Microsoft products for their dwindling operations. In a very real way (since I live in northwest Washington) there will be less money for police to protect Microsoft's physical assets.

Don't these circular relationships represent the defintion of a "downward spiral"? Are we sure we understand the impact of these actions?

In the meantime I will buckle under and keep working my ass off. My kid's doctor doesn't accept righteousness as a form of payment.