[Paul R.]

Comments? This seems to fit what I see around me...

It also means the destruction of this country if sustained, I believe. But it falls into lib pols' plans perfectly (everyone except those in charge end up dependent on the gov't.)

[Paul R.]

[Moonman62]

Why does the Fed blame inflation on wage growth?

[factoryrat]

Maybe it has something to do with having to compete with third world labor, massive exporting of labor, and the importation of millions of foreign workers to replace the “overpriced” domestic labor.

How do you compete with slave labor?

The answer is: you can’t, unless you’re willing to become a slave.

[teeman8r]

I wonder if the chart for public sector looks similar?

[rdcbn]

One of the biggest conundrums, one that has profound monetary policy implications, and that has been stumping the Fed for the past year is how can it be possible that with 5.5% unemployment there is virtually no wage growth.

---

The answer to why there has been no wage growth in America , even in the face of monetary policy intentionally intended to drive inflation and wage increase,is very simple.

The competition from low wage, mercantilist export based economies in China , Asia and India are keeping a lid on wages in the western world.

Alan Greenspan was virtually crowing about the fact that the massive growth in the Chinese export economy was allowing him to keep the pedal to the metal on his post 2000 crash Federal Reserve easy money and low interest rate with no inflation for years longer he ever though possible due to Chinese low cost exports.

What Alan neglected to understand or mention, was that those same economic dynamics were leading to the wholesale destruction of American domestic manufacturing and offshoring of American industry to the third world.

Alan also neglected to understand what his policies were doing to generate a real estate bubble in the American economy

[kabar]

When you have a huge surplus of labor fueled by bringing in millions of foreign workers, wages will decline in real terms or at least be depressed. Why do we bring in 1.1 million legal permanent immigrants a year and 640,000 guest workers annually? Add to that hundreds of thousands of illegal aliens who cross our borders every year. We have the lowest labor participation rates since 1978 yet we see no change in the numbers of foreign workers who flood our country.

[wjcsux]

Look at the bright side. Importing millions of illegal foreign workers will fix the problem according to the Dems and RINO’S.

[marron]

how can it be possible that with 5.5% unemployment there is virtually no wage growth.

You'll never solve anything if you start by lying to yourself.

[freeangel]

It seems to me that wage growth cannot occur when there is a record number of unemployed/underemployed.

[2 Kool 2 Be 4-Gotten]

One reason could be punitive tax rates that make it more profitable to take one’s compensation in other forms - i.e. other than just salary. Not sure how prevalent that is - but it’s a formal possibility - sort of a defacto wage control. In addition of course to the importation of cheap labor and products.