Forecasts this year are for real GDP growth of 7%, single-digit inflation and continued increases in real wages.
And, in fact, rising real wages was the history of our country in the nineteenth century.
FORBES: Anti-Immigration Rhetoric Frighteningly Reveals Education's Failure
Economists have demonstrated that real wages have to rise as long as the immigrants are self-supporting.
FORBES: Anti-Immigration Rhetoric Frighteningly Reveals Education's Failure
So, what we should see is stagnating or falling real wages for our lowest skilled workers.
For if real wages rise we expect services to rise in price in relation to commodities.
FORBES: Proof That Real Wages Are Rising: Baumol's Cost Disease
Meanwhile, real wages have risen less than 2% per year for the past two years.
Average hourly real wages flattened out in an environment of mid-seventies capacity utilization in the country.
And although lots of jobs have been created in recent years, real wages have stood still.
Real wages and incomes have plummeted, even more since the recession was supposedly over.
FORBES: President Obama Offers A Repeat Of His Same Failed Policies
Even as inflation lowers real wages, other factors can work to increase employment costs.
In other words, real wages, on average, have fallen by around 4% since the election.
Real wages, which had been growing by over 10% a year for a decade, are falling.
Instead they need a combination of lower real wages, lower input prices and higher productivity.
Now, the same increase in joblessness would squeeze real wages for the average workers by 12%.
Increases in productivity yields higher real wages and a more prosperous standard of living.
Since 1994 consumer prices in China have doubled and real wages have risen by about 50%.
In 1997 the spread between real wages and inflation was the largest it's been in ten years.
Real wages and incomes also continued to decline even after the recession ended, which again was unprecedented.
FORBES: President Obama's Re-Election Is Powerful Evidence Of Democracy Failure
This will also in part be thanks to another bit of ugly economic news: falling real wages.
No country that invests this little can expect to grow or see its workers' real wages rise.
Now, stagnating or falling real wages could easily lead to slower employment growth for at least two reasons.
This is the first recovery in at least 50 years in which real wages for most have declined.
FORBES: Three Ways The President Can Create Digital Jobs Now
In October 2011, real wages for ordinary workers were 6.7% lower than they had been 39 years before.
Others blame weak demand, as high inflation, falling real wages and fears for the future discourage household consumption.
First, declining real wages for US manufacturing employees is exactly how we would expect this situation to play out.
Higher inflation will allow real wages to fall faster and markets to clear.
However, economic history has proven over and over again that real wages actually decrease during periods of rising inflation.
In normal circumstances, in order to cut real wages, devaluing the currency is more palatable than reducing nominal wages.
So if inflation is zero, real wages cannot easily fall in declining regions or industries, and unemployment will rise.
ECONOMIST: Central banks disagree on the rate of inflation to aim for
And since it is hard to cut nominal wage rates, price stability could put a floor beneath real wages.
应用推荐