Over the past six months, wages have increased due to tight labor market conditions, yet overall earnings, especially for men over several decades, have been flat since 1975.
To the extent that government can stimulate growth, it’s through structural reforms that improve the investment climate: Cut red tape. Reduce workplace regulation. Fast-track tax cuts. Fix the state-based payroll taxes and stamp duties on property that stifle labour mobility. Make the 30 per cent company tax rate more internationally competitive. Break the construction union’s monopoly power. Restore monetary policy to its appropriate role of maintaining price stability.
When the debt bubble pops so will other liabilities like the $1.5 quadrillion of derivatives.
The truth is that most American families are deeply struggling, but you hardly ever hear this from the mainstream media. Yes, about 10 percent of all American workers are making $100,000 or more a year, but most of those high paying jobs are concentrated in the major cities along the east and west coasts. For much of the rest of the country, these are very challenging times as the cost of living soars but their paychecks do not. According to the Social Security Administration, the median income in the United States last year was just $32,838.05. In other words, 50 percent…
Today, the U.S. dollar is the world’s most powerful reserve currency, making up over 61% of foreign reserves. The dollar gets an extensive network effect from its use abroad, and this translates into several advantages for the multi-trillion dollar U.S. economy.