It's been 10 years since the stock market crash. The economy has been growing; the stock market has been climbing. Unemployment has fallen to a several-decades low. Businesses are having trouble filling openings. These conditions are supposed to unleash robust wage increases. But in most industries it isn't happening. Why?
That's what a reporter asked Fed head Jerome Powell yesterday. And he said, "It's a puzzle."
Really? That's the best you can do?
No one's asking you to predict the future, only explain the present. And it's important: 70% of economic activity is consumer spending. If we don't have enough income to spend, businesses suffer. Possible explanations: big companies have forgotten how to grow organically, growing instead through mergers and acquisitions, and economies of scale; for 50 years we've exported manufacturing jobs, which show no sign of ever returning even under new trade protectionism; and unions, a force for rising wages, have waned on the mainland.
Copyright 2018. Hawaii News Now. All Rights Reserved.
Hawaii News Now
420 Waiakamilo Road, Suite 205
Honolulu, HI 96817
Main (808) 847-3246
News (808) 847-1112