I think people are getting lost right now in details and not looking at the big picture. We have been complaining for years for wage growth for low income workers. Wasn’t that always going to involve inflation of everyday goods and services?
Who does this inflation impact? Yes everyone but does it really? Yes 6%-7% inflation impacts me as my company will probably have a 3% annual raise but I am not hurting to buy anything.
Let’s look at those low income workers though. They were making in Louisville around $10/hr and now they can get any job they want for $15-$20/hour with overtime. Is someone who effectively got or has the opportunity to get a 50%-100% raise over the last year and a half affected by 7% inflation? Not really they still have much more buying power and are much better off than they would have been.
My thing is this. If we wanted higher wages for low skilled workers it was always going to look like this. There was never any amount of cajoling that could be done to make employers pay workers more when they were constantly getting more qualified applicatants than they could ever hire.
I joked the other day when I got hired at Humana as an actuary we were like a bunch of kids hanging outside the doors waiting for it to open to rush and get our foot in the door and wedge our way in in front of the other 200 people who wanted that job. Now the area outside our door is clear and we have to go out in the street and grab passersby to talk them into working for us.
I guess my main concern is this. Why are Democrats letting Republicans brand this as economic failure? They wanted the exact same thing. This was implicit in all of their border closings and trade wars with China. Better wages for American workers. We have it and now Biden is being blamed for it like it’s some kind of cancer to our economy.