Tag Archives: inflation
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Structural Wage Stagnation Causes Economic Weakness
Leave a commentJuly 21, 2018 by Ivan V. Sichkar
The US economy has a structural wage stagnation. For the last 34 years, wages have been growing at the effective real annual rate of 0.51%. Consumers who rely on salary alone, cannot increase discretionary spending too much. As discretionary spending declines, economic growth will slow down. This creates a risk for the next economic recession.
