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Wage Growth, The Fed, And Market Hubris



Wage Growth, The Fed, And Market Hubris
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In former perspectives I have laid out the fundamental reasons why wage growth, dormant for decades, is on the precipice of a rebound. This thesis is based primarily on the recalibration of U.S. labor supply and demand curves. Demographic changes over the last two decades, including the shrinking working- age population and the recent decline in the female participation rate are central to this theme. However, the exponential increase in wages in emerging market economies, particularly China, also play a role as off-shore labor costs are diminishing the access of U.S. corporations to the global labor pool.


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