When liquidity is high, a glut of low-performance consultants exist billing high rates. Industry term, they're "the fat". The rate is not relevant, the productivity is - they do just enough to justify whatever rate they demand (as a stereotype, not absolute).
When liquidity is low, the inverse scenario is usually more prevalent. The businesses need absolute precision from all execution. The glut of "the fat" are culled as cost-savings to keep the business afloat. The 20% who do all the work, can now ask for even higher rates because their productivity determines if the business lives or dies (from the 80/20 rule, or Pareto principle).
If you're the 80% of waste, hope you had savings. If you're the 20% of the Builders, you should consider doubling your rate - especially because your competition would probably currently pay it.
Enjoy.
(post is archived)