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Overall wages are rising, particularly at the low end. Wages are growing at about a 3.7% annual pace. Income inequality is dropping too. The share of income ea
by tropo 7y ago
Overall wages are rising, particularly at the low end. Wages are growing at about a 3.7% annual pace.
Income inequality is dropping too. The share of income earned by the top quintile has dropped, and this shows in the Gini coefficient.
The above is to be expected based on unemployment numbers. For the first time ever, there are more job openings than people seeking jobs. This has come about because imports have been replaced by domestic goods (the tariffs helped) and because there are fewer immigrants to drive down the cost of labor.
- AdrianB1 7y agoI've seen this happening in some countries, the result was the disappearance of the middle class: the minimum wage was pushed up until it got close to the median, now people are closer and closer to the minimum wage. Imagine minimum wage is 50 units and median is 100, if you grow minimum to 70-80, but you cannot increase the median (because the market does not support all the raises), then the former middle class is now close to lower class; as you increase the minimum wage, this creates inflation and makes purchasing power of the middle class even lower, so in the end you get it transformed in an upper poor class.