wage growth

Will There Be Real Wage Growth?

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Reading Time: 5 minutes The economy has witnessed lower nominal wage growth than previous times in this phase of the business cycle when the unemployment rate was at current levels. Depending on how you calculate inflation and which type of industry and workers you look at, real wages have either grown modestly or have…CONTINUE READING

Are Low Wages Supporting High Corporate Profit Margins?

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Reading Time: 6 minutes The problem with macroeconomic analysis is when economists make broad statements about the economy. The reason this is not practical is because the economy is a complex system and is constantly changing. The job of the Federal Reserve is to make policy decisions for the whole economy which is a…CONTINUE READING

Wage Growth & Blue Collar Jobs

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Reading Time: 4 minutes Studying the labor market to determine the strength of overall wage growth is challenging. There are many stats which contradict each other. Economics is like the stock market in that there is always a positive and a negative case. It’s best to hear both sides before formulating a conclusion. Having…CONTINUE READING

Why Inflation Will Increase In 2018

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Reading Time: 5 minutes The Perfect Scenario For Stocks With the economy regaining steam in 2017, the number one risk to equities and economic expansion is inflation. The current economic expansion hasn’t produced inflation, as measured by core CPI, because the growth in inflation as a result of QE has been subdued to mainly financial…CONTINUE READING

Impact of Financialization on Labor

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Reading Time: 6 minutes The American worker is getting fleeced. This has been happening for decades, but in recent years the problem has intensified with current monetary policy and lack of fiscal reform. However, the recent gradual change in monetary policy may provide a light at the end of the tunnel. The only question…CONTINUE READING

Effects Of US Skills Gap

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Reading Time: 5 minutes One of the most critical questions politicians, economists and most importantly the workforce itself are concerned with is the lack of wage growth. As you can see from the chart below, the labor market seems to be tight according to the jobless claims to labor force ratio. Despite the lowest…CONTINUE READING

Consequences For Europe During ECB QE Reduction

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Reading Time: 5 minutes In this article we’ll look at the ECB’s monetary policy and the macroeconomic metrics in Europe. The biggest decision in the queue is what the ECB does with its bond buying program. The decision on the size and duration of Quantitative Easing in 2018 will be announced on October 26th.…CONTINUE READING

No Economic Stimulus, No Productivity Growth

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Reading Time: 4 minutes In the recent few weeks the reflation trade has unwound as the Russell 2000 is now negative for the year, the ten-year bond yield has plummeted to 2.2374%, and bank stocks have fallen about 9% since March 1st. To be clear, the Russell 2000 initially rallied after Trump’s election because…CONTINUE READING