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Japan isn't a very good example because their economy has absolutely tanked because of their horrible monetary policy. Japan was in a liquidity trap caused by t

Japan isn't a very good example because their economy has absolutely tanked because of their horrible monetary policy. Japan was in a liquidity trap caused by their low inflation for literally decades which caused their economy to grow barely 1% annually. The reason their unemployment rate is low is because they've been stuck in this rut for literally 30 years, so people have adjusted. That doesn't mean it isn't causing immense harm though. Real wages are literally lower than they were in the early 90s. https://www.economist.com/finance-and-economics/2013/03/09/waging-a-new-war https://www.economist.com/finance-and-economics/2013/03/09/w...

djohnston 5y ago
Real wages for Americans also haven't grown in decades: https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/ https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us... What's the harm?
- colinmhayes 5y ago
  Your chart shows that real wages are up 10% over the last 2 decades. Japan's are down. This doesn't even account for benefits, which have grown at an incredible rate due to health insurance costs. And that's not inflation, health care has gotten better, maybe unnecessarily so.
- kriskrunch 5y ago
  The total benefits chart they provide is more accurate than just looking at cash compensation. Non-monetary compensation, like health insurance, still costs the business a lot of money. Would you be in favor of getting rid of mandatory health insurance and passing that money to employees instead?
friedturkey 5y ago
“Tanked” according to economists. If the news weren’t telling us the economy tanked, nobody would be worried. Houses are affordable, jobs are everywhere, people aren’t going into lifelong debt because of medical issues. In countries with inflation, the wealth divide is massive and growing. Wages might be up sometimes. But house prices and health insurance far outstrip any gains there. I guess milk is a little cheaper though. Maybe that tips the scales.

djohnston 5y ago

Real wages for Americans also haven't grown in decades: https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/ https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us... What's the harm?

colinmhayes 5y ago
Your chart shows that real wages are up 10% over the last 2 decades. Japan's are down. This doesn't even account for benefits, which have grown at an incredible rate due to health insurance costs. And that's not inflation, health care has gotten better, maybe unnecessarily so.
kriskrunch 5y ago
The total benefits chart they provide is more accurate than just looking at cash compensation. Non-monetary compensation, like health insurance, still costs the business a lot of money. Would you be in favor of getting rid of mandatory health insurance and passing that money to employees instead?

friedturkey 5y ago

“Tanked” according to economists. If the news weren’t telling us the economy tanked, nobody would be worried. Houses are affordable, jobs are everywhere, people aren’t going into lifelong debt because of medical issues. In countries with inflation, the wealth divide is massive and growing. Wages might be up sometimes. But house prices and health insurance far outstrip any gains there. I guess milk is a little cheaper though. Maybe that tips the scales.