Looking at wages is misleading. Total compensation, including benefits, has been going up consistently. Labor’s share of national income has also been pretty consistent. What’s been happening is that the increasing costs of benefits have been wiping out gains in wages. But that’s not a problem with “the economy” as a whole. From the perspective of employers, it makes no difference if an employee costs $1,000 per year because they get a raise or because the cost of health insurance went up.
Now, if education and healthcare is eating up all the gains, that might be a reason to reform those sectors. But there is a big difference between compensation going up but prices increasing quickly in particularly important sectors, and compensation not going up at all. The former is a problem with those sectors. The latter would indicate a structural problem with the economy.
Now, if education and healthcare is eating up all the gains, that might be a reason to reform those sectors. But there is a big difference between compensation going up but prices increasing quickly in particularly important sectors, and compensation not going up at all. The former is a problem with those sectors. The latter would indicate a structural problem with the economy.