History of the Real Federal Minimum Wage

History of the Real Federal Minimum Wage Today, the real federal minimum wage is worth 31% less than in 1968. It is also the longest period without an increase (adjusted for inflation). See also “Wage Growth vs. U.S. Home Price Growth.” Picture source: Economic Policy Institute

Wage Growth vs. U.S. Home Price Growth

Wage Growth vs. U.S. Home Price Growth This chart shows that U.S. home prices are rising faster than wages. There is clearly a widening gap between wage growth and house price. Today, houses are too expensive for most young people.

Since 1990, No Recessions Without 4% Wage Growth

Since 1990, No Recessions Without 4% Wage Growth Since the beginning of the Great Recession, wage growth has been slow in this business cycle. But keep in mind that since 1990, no recessions without 4% wage growth. So, a recession is probably not imminent. Picture source: Blackrock

When Is the Next Recession Coming?

When Is the Next Recession Coming? If history helps us to predict the future, a recession can occur when: Wage Growth minus Fed Funds Rate is below -1%. Why? Because the Fed is too tight at that moment. Since 1965, a recession has never occurred until Wage Growth minus Fed Funds Rate was below -1%…

Why Is Core Inflation So Low Compared to Previous Business Cycles?

Why Is Core Inflation So Low Compared To Previous Business Cycles? The Consumer Price Index Less Food & Energy (Core CPI) is very low compared to previous business cycles in the US, for several reasons: – not fast-rising money supply – globalization: inflation is a global phenomenon – lack of wage acceleration – increase in…