Saturday, May 4, 2019

Lower taxes and regulation=Rising wages.

To get growth in hourly earnings you need two things:

1. A tight labor (i.e. fewer people not working)
2. Employer optimism about demand

It's pretty clear that around 2017 something changed from the previous 8 years. My strong guess is that it was the election of a government that promised to lower corporate taxes and reduce regulatory burden. Any other guesses?


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