Economists puzzled by severed link between job growth and wages.

[Panich52]

Economists puzzled by severed link between job growth and wages. Bloomberg:

“Wages aren’t growing faster in states with lower, sometimes substantially lower, jobless rates than the nation’s … Former Treasury Secretary Lawrence Summers says the link is so weak the Federal Reserve can maintain record-low interest rates to underpin the economic expansion without the risk that wages and inflation start climbing. Policymakers such as James Bullard, president of the Federal Reserve Bank of St. Louis, say wages and the forces driving them are lagging indicators and the Fed should start raising rates soon.”

http://www.bloomberg.com/news/articles/2015-03-16/your-wallet-isn-t-getting-fatter-as-economics-101-comes-unhinged

[hobbit709]

1. They won't climb until people won't take shit jobs for shit pay.

And despite the rosy outlooks, the jobs are few and people are desperate.

[djean111]

2. Because the new jobs are crap pay and crap benefits? And crap hours?

And increased production now only benefits corporations and stockholders?
I would venture to say that Lawrence Summers knows damned right well why this is happening.
The only other answer I can think of is duh!

[Skidmore]

3. Have the not noticed that

service sector jobs have never been and are not treated as manufacturing jobs or jobs in professions? If the policy is that we are to be a nation of restaurants or entertainment venues and retail outlets, then a very fundamental shift needs to occur in how work is valued. Right now the one gainful employment is considered to be that of consumer and that has a negative cash flow.

[TheKentuckian]

4. They pretend to be puzzled because they are snake oil salesmen.

Or they are genuinely puzzled because they are know nothing con artists.

[PowerToThePeople]

5. capitalism is a success! n/t

[hankthecrank]

6. Inflation

Rich assholes =get all kind of raises = no inflation
Little people wages go up=inflation

I think as djean111 says wages not going to go up

[CanonRay]

7. Why create jobs when you can use fear of unemployment

to squeeze 60-80 hours a week out of full timers and then move your profit offshore?

[ND-Dem]

8. +100.

[hunter]

9. Raising the minimum wage...

... and increasing the number of well paid entry level government jobs and free public education opportunities would solve this problem quickly.

The "puzzle" is that the uber-wealthy buy politicians and tend to hoard money in schemes that do not improve the lives of ordinary people.

Personally, I think the uber-wealthy class ought to be taxed out of existence. They are trashing our nation.

[One_Life_To_Give]

10. Because there is still a surplus of labor

As long as you have surplus labor, wages will stagnate. When we get all of the underemployed and discouraged workers back into the labor-force and have low unemployment. Then you will see wages rise.

[rainy]

11. Here's how it works according to Thom

Hartmann: when a company is taxed at a very high rate after their first, let's just say one million, they have a strong insentive to put the profit back into the company by higher wages new equipment and new hires. If the taxes are too low they are more likely to keep all profits.