Former council of economic advisers acting Chairman Mari Wednesday argued that real wages have shortened from Biden's office 5 months ago and said that the decrease directly affected the labor supply on FOX Business'Mornings with Tyler Goodspeed.
I haven't seen any mainstream media reports on this, that real wages in the United States have actually fallen for the past five months, for each of the five months of the Biden administration's history.
When the report on jobs came out the following week, we heard the White House exhorting big nominal wage increases - which sort of got me scratching my head thinking, huh, I wonder what happened?
When we factor in inflation, we see that not only have the real wages declined month-over-month for each of the past five months, but overall since December, Real wages have decreased by 3%.
And so there are all the different explanations that we have for why the labor force is declining. To an extent, the participation of the labor force was either declining or stagnating from the UI Top-Up, it is still possible that schools are on hybrid or remote learning modes. The fact that there are still pandemic fears.
But I think this is really underreported, but at the end of the day, Labor Supply responds to nominal wages, not real wages. And nominal wages have been eroded as real wage gains have been outstripped by inflation.
Private employers must compete with unemployment insurance programs. There was talk about wage hikes.
My priority would be first, get back to optimum employment as possible Don't be putting the cart before the horse.