I kinda buried the lede last week in my Structural or Transitory? post; we looked at a few inflation elements, including Supply Chains, Goods vs. Services, Semiconductors & Autos, Energy, that all are fairly well understood.
Then there was the wage portion of our discussion. In case it snuck by unnoticed, let me share the money shot with you:
“Real Median Wages were unchanged from 1979 to 2014; Real Minimum wages were the same in 2015 as they were in 1949.”
This is astonishing; it puts into stark context how the bottom wage quartile has lagged for decades; (no real gains for mope than half a century? No wonder so many people are angry). One possible, simple explanation of what is occurring right now is that those wages are belatedly catching up.
Said differently, we are experiencing a generational reset of the minimum wage across most of the