The fall off in wage growth is not a sign of over all weakness but an indication of the regressiveness of this unprecedented US trickle down policy of using massive gov interest expense to drive growth.
@wbmosler That's a recent part of the wages story. Post-WWII wages appear to have attained an overall longwave peak in 1972, thence gradually weakened towards the next depressionary trough ever since.
@wbmosler When a high degree of monopolization characterizes an economy, like the US, when consumer spending slows (ex: real retail sales now flat to declining) business response is to raise prices & simultaneously slow nominal wages in order to protect profit margins
@wbmosler Yes but it’s not an expense, it’s a handout. Govt has no piggybank full of pence from which to expend. Its capacity to hand out cannot be spent. It doesn’t have income, it has revenue.
@wbmosler intentional policy, or unintended consequences?
@wbmosler 40% of US GDP is working poor private debt… Some ”growth” eh?
@wbmosler when seen through the distribution lens, logic certainly tracks.