Are associates really competing for tasks with paralegals?

A National Law Journal article -- "As support staff layoffs continue at firms, attorneys learn to share resources" -- reports on the increasing number of layoffs of support staff in law firms. It also suggests that some associates might be keeping their billable hours up by doing paralegal work.
http://www.law.com/jsp/nlj/PubArticleNLJ.jsp?id=1202426604353

Articles, such as this, show the kind of decisions that partners, associates, and their support staff are having to make in a down market.

It is important to note that firms are being affected differently by this economy: "'In good times, you'll see firms that have built up some extra fat in their administration. Some of these staffs have gotten really large, and they will cut nonessential positions,' Altonji said. 'Other firms will cut into the bone, and make cuts that aren't prudent. Essential services could be curtailed.'"