Josh Bivens: Slow Wage Growth Just One More Sign of How Big a Problem the Profit-Biased Recovery Is: Noted for August 23, 2013
A last, possibly peevish sidenote--while we’re often accused (correctly!) of being pretty gloomy on the economic picture for most American families, we’re also often accused (incorrectly!) of feeding a sense of fatalism by not providing potential solutions or highlighting what could be changed. We’ve got some solutions here, and, we should note that there is a glimmer of good news in Larry and Heidi’s analysis: we are a rich country that gets richer just about every year. Look at the productivity trends (check out Table 1) in their piece--in 2012 productivity was nearly 8 percent higher than it was at the start of the Great Recession! The problem is insuring that these potential income gains actually are broadly shared—and this is mostly a political problem. Political problems are bad (trust us, we know), but they’re better than genuine economic problems. To put it another way, it’s better to be arguing over how to fairly split up a big pile of money than to have no big pile of money to split up.