Everyone is talking about how to alleviate energy prices this winter, but no one acknowledges that the average household has been getting poorer for more than a decade.
A tighter labour market than in the past is now needed to drive real wages growth.
If we want higher wages, we must win them through deliberate wage-boosting policies.
As inflation bites, targeted relief for those most affected by the rising cost of living would be the best short-term option.
The US economy ended 2021 with a lot of uncertainty and serious problems, such as inflation. How will economists know if things are improving in 2022?
The rise of superstar companies that dominate their industries may be partly to blame for the lack of wage growth in the US in recent years. It could also suggest a solution.
Employer groups are calling for a cut in real wages for low paid workers, but this would only exacerbate current problems.