The cart below shows BLS data on median weekly earnings between 1999-2020 for full-time workers (adjusted for inflation).
From 2002 to 2015, wages didn't budge. No growth.
In 2018, they surged more than at any time (by far) in two decades. pic.twitter.com/ehDbv69VlT
— Jon Miltimore (@miltimore79) November 13, 2020
The data above is from the United States. Real wages are rising for the first time in a long time which is as good a reason for the Deep State to get rid of a president as I have ever heard. Imagine letting workers earn more which is taking money right out of the hands of the people who run projects funded by the public sector.
Government spending is in part hiring the useless to do unproductive jobs plus creating programs that soak up billions of dollars supposedly to create jobs.
And keeping interest rates as low as possible is all part of the process. The role of interest rates is to allow the market to determine which projects are the most likely to have a positive return. Near-zero interest rates allow governments to compete physical capital away from private entrepreneurs at the lowest possible cost to Treasury. This was from the RBA Governor on the fifth of November: Statement by Philip Lowe, Governor: Monetary Policy Decision. There was a time a discussion such as this would cause a first year student to fail the course. Now it is the highest good sense in economic policy.
Wages growth remains subdued and is expected to remain at around its current rate for some time yet. A further gradual lift in wages growth would be a welcome development and is needed for inflation to be sustainably within the 2–3 per cent target range. Taken together, recent outcomes suggest that the Australian economy can sustain lower rates of unemployment and underemployment.
The virtue in having higher wages growth, you see, is so it might raise the inflation rate towards its target range. Not so that wage earners might earn a higher income, but so that inflation might rise which means that any wage increase projected will come without productivity growth. Otherwise, if productivity were also rising there would be no inflation.
Moronic doesn’t quite capture it.