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The solution to America’s affordability: raise wages, but that's broken toowww.cnn.com/2025/12/15/economy/affordability-jobs-inflation
251 sats \ 4 comments \ @winteryeti 19h econ
"The best way to fix Americans’ cost-of-living problem is to give workers bigger raises, Federal Reserve Chair Jerome Powell said last week.
The problem: That solution looks broken, too. The US job market has been stagnant in recent months, and paycheck growth has been falling steadily for more than three years."
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69 sats \ 1 reply \ @SimpleStacker 19h
I'm a bit surprised that he said that. I don't think it makes a lot of sense economically. I'm sure he doesn't think that giving people artificial wage increases not coupled to increased productivity would fix cost of living problems in the long run. Unless he somehow thinks that wages are artificially depressed due to monopsony in the labor market
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0 sats \ 0 replies \ @Undisciplined 19h
I suspect that’s the direction he was thinking.
When he says it’s the “best” way, though, I wonder what criteria he has in mind.
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0 sats \ 0 replies \ @anon 10h
You raise wages by increasing productivity
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0 sats \ 0 replies \ @OriginalSize 11h
Raises worked in the 70s but this ain't the 70s. Hopefully the AI-job-pocalypse isn't as bad as people say.
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