Click to enlarge.
As seen in the chart, the only wage pressure building up right now is coming from the dead cat and its bounce.
Hey Yellen! Not only do I dare you to hike rates, but the cat does too! It's a double dare!
Source Data:
St. Louis Fed: Custom Chart
The reason so many millionaires and billionaires support Hillary Clinton is that it is good business.
ReplyDeleteTax the ownership class, give subsidies to the middle class to keep prices high, then the money flows back to the ownership class.
Joseph Constable,
ReplyDeleteFor what it is worth, I'd vote for Hillary over Donald Trump.
give subsidies to the middle class to keep prices high, then the money flows back to the ownership class
ReplyDeletefwiw, this matches with my understanding of our economy.
Gov't pours $18,000 per man, woman, and child:
http://research.stlouisfed.org/fred2/graph/?g=1aRo
into the top, and the rent-seekers get to take most of the action before too many iterations.
As for the wage inflation graph, the good news is no coming recession is indicated.
Gen Y is age 13 to 31 now. Hoocoodanode there'd be too many people and not enough jobs for them while most of the boomers are still in their 50s and early 60s.
Troy,
ReplyDeleteAs for the wage inflation graph, the good news is no coming recession is indicated.
So if year over year hourly earnings growth continues to fall that won't be a problem?
Just offering another interpretation of the chart.
Not saying that the growth will continue to fall, but I don't look at the chart and see a healthy economy, especially since we're in ZIRP.