1/7
After 4-5 decades of wage stagnation, I think it definitely makes sense that Washington try to strengthen the bargaining position of American workers. Not only would this reverse the huge imbalance of the past few decades, in which...
wsj.com/articles/biden… via @WSJ
After 4-5 decades of wage stagnation, I think it definitely makes sense that Washington try to strengthen the bargaining position of American workers. Not only would this reverse the huge imbalance of the past few decades, in which...
wsj.com/articles/biden… via @WSJ
2/7
a very small elite captured nearly all of the productivity gains made by American workers and the middle classes, but it will also encourage business investment by increasing sustainable domestic demand. i.e. without underpinning it with soaring household debt.
a very small elite captured nearly all of the productivity gains made by American workers and the middle classes, but it will also encourage business investment by increasing sustainable domestic demand. i.e. without underpinning it with soaring household debt.
3/7
It would also incentivize American businesses to invest in boosting labor productivity, which in the end is the only sustainable way to increase income.
It would also incentivize American businesses to invest in boosting labor productivity, which in the end is the only sustainable way to increase income.
4/7
But we should remember that in out hyper-globalized world, international competitiveness is achieved mainly by directly or indirectly lowering wages.
But we should remember that in out hyper-globalized world, international competitiveness is achieved mainly by directly or indirectly lowering wages.
5/7
This means that unless the global trade and capital regime is radically reformed, much of the benefits of higher wages in then US will accrue to countries that continue to suppress domestic household income.
This means that unless the global trade and capital regime is radically reformed, much of the benefits of higher wages in then US will accrue to countries that continue to suppress domestic household income.
6/7
This means that part of the global increase in demand driven by higher US wages will be lost as countries with lower wages relative to their productivity levels take market share away from countries with higher wages relative to their productivity levels.
This means that part of the global increase in demand driven by higher US wages will be lost as countries with lower wages relative to their productivity levels take market share away from countries with higher wages relative to their productivity levels.
7/7
We should want to expand global trade, but we should limit this expansion to countries that balance their contribution to global demand with their absorption of global demand. It is the whole world, and not just the US, that would benefit from higher wages.
We should want to expand global trade, but we should limit this expansion to countries that balance their contribution to global demand with their absorption of global demand. It is the whole world, and not just the US, that would benefit from higher wages.
The beginning of external rebalancing? It will matter a great deal how business investment reacts.
edition.cnn.com/2021/11/25/eco…
edition.cnn.com/2021/11/25/eco…
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