Where is the wage growth?
This morning’s job’s report begs a lot of questions. Most notably, months after Republicans enacted their tax law, where is the wage growth that they promised? Today, the Washington Post examines how the GOP’s tax law – which they touted as rocket fuel for the economy – has failed to yield wage increases for working Americans. Key excerpts:
“The December tax cuts were sold on the promise that they’d boost an already-strong economy, driving wages up and increasing job growth. … In the March jobs report, the picture isn’t as clear.
“Wages are up 8 cents hourly overall — but half that amount is for production and nonsupervisory employees, presumably the sort of blue-collar employees at whom Trump’s increased-wage promise was targeted.”
“If we compare the past year for each of those groups, it’s not clear that there’s been any significant boost post-tax cuts (January to March) than in the previous three-month periods.”
“The tax cuts, though, were supposed to be ‘rocket fuel’ for the economy, giving businesses a big tax cut that would then result in increased wages for their employees. A survey in February found that only about 13 percent of the corporate tax cuts were going to workers; unions say their workers aren’t seeing the benefits.”
“It’s only been three months, but, then, rocket fuel isn’t really known for its slow burn.”
“Wages are up 8 cents hourly overall — but half that amount is for production and nonsupervisory employees, presumably the sort of blue-collar employees at whom Trump’s increased-wage promise was targeted.”
“If we compare the past year for each of those groups, it’s not clear that there’s been any significant boost post-tax cuts (January to March) than in the previous three-month periods.”
“The tax cuts, though, were supposed to be ‘rocket fuel’ for the economy, giving businesses a big tax cut that would then result in increased wages for their employees. A survey in February found that only about 13 percent of the corporate tax cuts were going to workers; unions say their workers aren’t seeing the benefits.”
“It’s only been three months, but, then, rocket fuel isn’t really known for its slow burn.”