4 ms·
Of course. The fact that wages are suppressed is known and expected. The author fails to mention the theory of sticky wages. Why? The author is making a politic
by bbimbop 9y ago
Of course. The fact that wages are suppressed is known and expected. The author fails to mention the theory of sticky wages. Why? The author is making a political statement about wage policy. In doing so lets you assume that wages should be related to supply and demand, but they are not. Wage levels are sticky and lag behind changes in the supply and demand for labor. Good news is that you can expect wages to increase in the relatively short-run, from which it seems the author (and most everyone) would benefit.
https://www.investopedia.com/terms/s/sticky-wage-theory.asp https://www.investopedia.com/terms/s/sticky-wage-theory.asp