tag:blogger.com,1999:blog-1110014885778996459.post1301711445487285664..comments2024-03-28T11:48:09.419-07:00Comments on Idiosyncratic Whisk: From the "We are the 100%" file: Sticky Wages and Sticky Fed Funds RateKevin Erdmannhttp://www.blogger.com/profile/07431566729667544886noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1110014885778996459.post-12584613773891075952014-11-20T06:11:39.253-07:002014-11-20T06:11:39.253-07:00Well, when nearest sustained strong demand for lab...Well, when nearest sustained strong demand for labor, then labor has more leverage, and vice versa.<br /><br />Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-37801749735651566792014-11-18T22:08:23.281-07:002014-11-18T22:08:23.281-07:00I agree. It would be one thing if we were at 8% i...I agree. It would be one thing if we were at 8% inflation, which does raise the de facto tax on capital gains. But the hawkish stance in today's context hurts everyone.<br /><br />I don't see any reason to think monetary policy would change the shares of national income over the long term.Kevin Erdmannhttps://www.blogger.com/profile/07431566729667544886noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-30170656893340153982014-11-18T21:56:12.074-07:002014-11-18T21:56:12.074-07:00I think I agree with this post.
That said, I thin...I think I agree with this post.<br /><br />That said, I think there is an inchoate belief on the right-wing that tight money clamps down on labor excesses, and shrinks government too. <br /><br />This erroneous conflation of monetary policy and the size of federal government is crazy.<br /><br />Tight money and wages? Maybe something there.<br /><br />Since the tight-money era started in the early 1980s, labor share of business income has fallen from 70% to 60%. <br /><br />You see FOMC board members like Fisher braying the wages are now rising faster than inflation, danger Will Robinson!<br /><br />So, there may be a class-war subtext to monetary policy. Even so, I think the upper class has cut off its nose to spite its face; rising wages and robust economic growth would benefit everybody. <br /><br /><br /><br /><br /><br />Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-28738631357921821592014-11-18T12:53:36.777-07:002014-11-18T12:53:36.777-07:00I agree, however consumer saving IS negatively cor...I agree, however consumer saving IS negatively correlated with profits (Kalecki profit equation) so the pro-profit crowd implicitly wishes consumers to fall deeper in debt.Anonymousnoreply@blogger.com