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The Chain Thrower January 26, 2015 2:00 PM | Tagged as chains, wages
WSJ, January 26, 2015, Page A15: “Solving the Puzzle of Stagnant Wages”, by Edward P. Lazear
“Evidence supports the view that stagnant wages are a result of government policy.” Thus reads the last sentence of Lazear’s op-ed.
While our current president condemns the poor wages of America, his own policies are largely to blame.
Our economy is like a heavy-weight boxer who was knocked to the canvas in 2008. Government policy, instead of helping him get up and back into the match, has thrown heavy chains around him (see: stimulus), making him stagger as he gets his feet under him, causing him to take the “full count” before slowly getting upright. This was met with more chains flung over his shoulders (cash for clunkers, etc.), causing him to lose his balance again and restart the recovery. This cycle repeated itself over and over. Eventually the fighter rose to fight again, but with the chains draping off his shoulders, he only was able to be defensive, to keep from getting knocked down again. Now the chain throwers are blaming everyone but themselves and demanding more chains to right the lousy recovery…like increasing capital gains taxes, to mention one chain.
Obama’s State of the Union address demanded more taxes from everyone who is “rich” so government can decide what is fair and divvy it out to those less fortunate. This socialist will stop at nothing to move us toward Europe and permanent wage and job stagnation.
Lazear makes a clear case that two highly paid industries, healthcare and financial services, are not creating jobs (and thus wage growth) as they should. Funny, that’s the two industries that Obama threw chains around with the (Un)Affordable Care Act and Dodd-Frank regulations. Funny, industries that require similar educational credentials as healthcare and financial services, such as professional and technical services, have grown jobs and wages. These industries have NOT been thrown chains from government. Lazaear also notes that wage grown tends to follow productivity growth. Obama’s policies have retarded investment, the catalyst for productivity growth.
The man throwing the chains just doesn’t get it. The problem with our lousy recovery is the face you see in the mirror, Mr. President.
[Although opinion is included, The Biz Bucks Blog is primarily written to former students of Biz Bucks training courses to encourage their daily reading of the three opinion pages of the WSJ. This refreshes principles of Biz Bucks courses and improves business acumen on topics not discussed in Biz Bucks training.]
Posted in MacroEconomics, Regulatory Overreach, Tax Policy | 0 Replies
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