Demand growth is what we want. Our economy has been largely demand-limited for a while. Demand growth boosts GDP growth.
Corporations are sitting on huge piles of cash, so they're not investment-limited. Any labor market tightness raises wages, which have been mostly stagnant for a long time (until very recently). Wage growth is also good.
If wage growth squeezes profits, then that's also good from a wealth inequality point of view.
Corporations are sitting on huge piles of cash, so they're not investment-limited. Any labor market tightness raises wages, which have been mostly stagnant for a long time (until very recently). Wage growth is also good.
If wage growth squeezes profits, then that's also good from a wealth inequality point of view.