Fed Chief 'Puzzled' That Despite Good Economy, Few Workers Getting Raises
Source: Talking Points Memo/AP
By Josh Boak | June 14, 2018 6:33 am
WASHINGTON (AP) Halfway through a news conference Wednesday, the head of the worlds most powerful central bank was asked a question weighing on the minds and the checking accounts of Americans everywhere: When will people finally start getting meaningful pay raises?
Jerome Powell, the chairman of the Federal Reserve, had no satisfactory answer.
He called it a puzzle. And then, as if measuring his words, he said he wasnt prepared to call it a mystery.
Puzzle or mystery, the source of the consternation is this: The U.S. unemployment rate has dropped to a multi-decade low of 3.8 percent. A shortage of qualified people to hire has frustrated many employers who have complained that they cant fill job openings.
Read more: https://talkingpointsmemo.com/news/fed-chief-puzzled-that-good-economy-few-workers-raises
mikeysnot
(4,757 posts).01% gets all the goods and we get the bill.
KPN
(15,646 posts)to something that more accurately reflects its outcome. "Siphon up economics" is a good start.
Say it again: Syphon up economics. Rinse and repeat: Syphon Up Economics. Etc, etc., etc.
mikeysnot
(4,757 posts)when the last time we had a guy with a famous last name that lost the popular vote but "won" the electoral vote was pResident...
Igel
(35,320 posts)was old school. He didn't exile his serfs, because they'd cause him to suffer an economic loss. He didn't strike his serfs, because to strike them would injure them and make them upset, and they'd work less. He didn't separate workers from their families, because it would reduce his income. He didn't have them arrested when they committed a crime, because it would be utterly humiliating to them and crush them. They learned that guilt passed with rage, in other words, if you stay out of the master's way in the time period just after you've done something wrong then when his rage passed there'd be no consequence. In the end, they suffered less from his hand, so they had less to complain or act out over. In the end, they had much less to complain about or act out over, so his periods of rage decreased. In the end both benefited.
Union membership in, say, teachers unions is typically low except for things like legal representation. It's near the same percentage that aren't shown in studies to value being valued, treated well, and having one's opinion taken into account by one's manager. In other words, it's the percentage for whom being valued in $ is more important than being valued in terms of interpersonal, human, relations.
Aksakov's "Family Chronicle" and workplace research from the mid 2010s get us to the same place.
However, I suspect there's something else going on. Part is uncertainty, because the marketplace is volatile. Part is belief in one's righeousness, because many of the most prosperous employers are also the most self-righteous. Part is that the economy isn't equally healthy in all sectors, and some sectors' profits aren't all that large--or they feel the need to reduce their indebtedness to make themselves economically more viable in the case of the downturn that we're probably past due for (except that financial panics like that of 2008 don't have normal recovery curves, so "probably past due for" is a bit of a guess). But part is certainly that while people definitely believe they have a right to more, most people aren't treated badly at work and most people don't see those higher up in the economic ladder in ways that provoke jealousy. Most of the people I see are in my situation; those my peers and I see are better off, and there's some economic resentment at that, but as much of a contributing factor to that is a perceived lack of respect and support. People never look down the economic ladder to say, "We're so much better off than they are"--except that people always tend to assume that those above them in the economic ladder do precisely that on an on-going basis.
Bengus81
(6,931 posts)Tell that idiot Fed Chief to go ask the top asshats at Corporations big and SMALL and that's the answer you'll get--and of course it's BS. Now the Fed is going to JACK the interest rates again. That isn't just for someone looking to take out a loan,all the CC Companies will also RAISE your cards interest.
Add to that rising fuel prices.............
maxrandb
(15,334 posts)you fucking "moran"
Turbineguy
(37,345 posts)CEO's getting pay packages beyond the dreams of avarice.
We earn it, they get it.
KPN
(15,646 posts)This needs to be repeated often and everywhere.
I also like Syphon Up Economics as a rebrand of trickle down. We need straightforward, graphic, blunt language ... not the same old erudite and nuanced fluff we Ds are prone to use if we want to strike the masses chords.
Phoenix61
(17,006 posts)dressed this morning. I'd ask how stupid does he think we are but the answer is obvious; dumb as a box of rocks.
Javaman
(62,531 posts)KY_EnviroGuy
(14,492 posts)food, energy, education, healthcare, construction materials, and eventually taxes.
But, the cost of Repug hubris, lies, deception and hypocrisy is still FREE!......
Hayduke Bomgarte
(1,965 posts)One word... Greed.
louis-t
(23,295 posts)muntrv
(14,505 posts)Mc Mike
(9,114 posts)Orsino
(37,428 posts)47of74
(18,470 posts)WhiteTara
(29,718 posts)Initech
(100,081 posts)And it doesn't take the Fed chair to figure that one out! The only people getting raises right now are CEOs who already make obscene 7, 8 and 9 figure salaries. We get peanuts, they get the whole peanut farm and the one next to it, and the one across the street from it.
uppityperson
(115,677 posts)Sherman A1
(38,958 posts)This is the Chairman of the Federal Reserve?
TomCADem
(17,390 posts)...as crowd size, millions of illegal voters, and the low number of Puerto Rico hurricane deaths.