“The United States labor market is closing in on full
employment in an economic expansion that just began its 10th year, and yet the real hourly wage for the working class has
been essentially flat for two years running. Why is that?
Economists ask this question every month when the
government reports labor statistics. We repeatedly get solid job growth and
lower unemployment, but not much to show for wages. Part of that has to do with
inflation, productivity and remaining slack in the labor market.
But stagnant wages for factory workers and non-managers
in the service sector — together they represent 82 percent of the labor force —
is mainly the outcome of a long power
struggle that workers are losing. Even at a time of low unemployment, their
bargaining power is feeble, the weakest I’ve seen in decades. Hostile institutions — the Trump
administration, the courts, the corporate sector — are limiting their avenues
for demanding higher pay.”
“The United States labor market is closing in on full
employment in an economic expansion that just began its 10th year, and yet the real hourly wage for the working class has
been essentially flat for two years running. Why is that?
"Economists ask this question every month when the
government reports labor statistics. We repeatedly get solid job growth and
lower unemployment, but not much to show for wages. Part of that has to do with
inflation, productivity and remaining slack in the labor market.
But stagnant wages for factory workers and non-managers
in the service sector — together they represent 82 percent of the labor force —
is mainly the outcome of a long power
struggle that workers are losing. Even at a time of low unemployment, their
bargaining power is feeble, the weakest I’ve seen in decades. Hostile institutions — the Trump
administration, the courts, the corporate sector — are limiting their avenues
for demanding higher pay.”
If you are a working class American, Trump is not the man for you!
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