One fact many people don't realize is that in order to achieve broad-based wage growth, we will have to face GDP losses. This is because there are many businesses that depend on cheap labor to exist. As wages rise, these businesses will start to fail, reducing GDP.
We should see this scenario (wage growth with stagnant or decreasing GDP) as a healthy adaptation. The danger is that politicians will react to the bad GDP numbers with dumb new economic interventions.
We should see this scenario (wage growth with stagnant or decreasing GDP) as a healthy adaptation. The danger is that politicians will react to the bad GDP numbers with dumb new economic interventions.