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From your first link: "Nominal wage growth has been fast over the past year relative to the past few decades, but it has lagged far behind inflation, meaning t
by rufus_foreman 4y ago
From your first link:
"Nominal wage growth has been fast over the past year relative to the past few decades, but it has lagged far behind inflation, meaning that labor costs are dampening—not amplifying—price pressures"
This is not necessarily true since it doesn't take into account labor productivity. From the BLS:
"Unit labor costs in the nonfarm business sector increased 10.2 percent in the second quarter of 2022, reflecting a 5.7-percent increase in hourly compensation and a 4.1-percent decrease in productivity. Unit labor costs increased 9.3 percent over the last four quarters. This is the largest four-quarter increase in this measure since a 10.6-percent increase in the first quarter of 1982. BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them."
From your second link:
"At the state level, we can do more and, frankly, we should have done it a long time ago. The 'Inflation Relief and Consumer Assistance Plan' (A.8481), which was introduced by Leader Barclay, would slash state sales tax for two years on everything from gas to groceries to utility bills. This would provide immediate and meaningful relief. The windfall in state sales tax revenue could easily be covered by surplus money from the federal government."
So during a period of inflation and rising interest rates, they are advocating fiscal stimulus financed by government debt. You think that is a good idea?