> Somewhat counter-intuitively, a low unemployment rate is a lot more important to workers' overall incomes than a rise in wages (given typical variation in bot

> Somewhat counter-intuitively, a low unemployment rate is a lot more important to workers' overall incomes than a rise in wages (given typical variation in both). That's generally true, but it's not an absolute, and it doesn't rule out paying higher wages while also maintaining the current level of employment. It's pretty clear from the data [1] that corporations are earning more than ever and not passing it on to employees. > This is also why high real wages are so damaging when they lead to higher involuntary unemployment: they actively rob those who are most in need of their rightful incomes! It's why recessions make people angry and anxious for "something to be done", whatever that might be. That's true, but doesn't apply. Real wages aren't even keeping up with inflation, and are decreasing relative to productivity [2], so it's silly to claim they're so high they're causing unemployment. [1] https://fredblog.stlouisfed.org/2018/08/corporate-profits-versus-labor-income/ https://fredblog.stlouisfed.org/2018/08/corporate-profits-ve... [2] https://www.epi.org/publication/charting-wage-stagnation/ https://www.epi.org/publication/charting-wage-stagnation/