January 10, 2009
Real wage growth, or, What's needed now
There are a bunch of you who are probably tired of me talking about real wage growth. I've been doing it for a while so it's understandable. It's really good to see others talking about it...
I think the big thing I'd add to that is growth in median incomes. One way or another, there's really no way for the economy to grow strongly and consistently unless middle-class consumers spend more, and they can't spend more unless they make more. This was masked for a few years by the dotcom bubble, followed by the housing bubble, all propped on top of a continuing increase in consumer debt. None of those things are sustainable, though. The only sustainable source of consistent growth is rising median wages. The rich just don't spend enough all by themselves.
And there it is, trickle down failed much like my effort to quit smoking in March. And June. And again in November.
Posted by mcblogger at January 10, 2009 03:33 PM
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