The one period of really robust wage growth in the last 40 years was the late 1990s, when the labor market was tight and workers could effectively demand higher wages in exchange for their labor. Fiscal and monetary policies that aim to recreate that situation might finally get Americans to stop saying we’re in a recession. Yet that’s not the focus of the conversation in Washington.
The reason our political betters, as opposed to we hoi polloi, don’t focus on jobs and wages is an unwarranted fear of inflation: a rump caucus of Fed economists jump at shadows when it comes to inflation. Underlying that fear is the belief that inflation is a tax. Never mind that depressed wages, underemployment, and, of course, not having a job are all taxes of sorts too. But interest income must be protected above all else.
Don’t know about you, but I don’t like this crap.