When the only tool you have is a hammer, every problem looks like a nail.

On Mon, Jan 5, 2015 at 3:33 PM, Eugene Coyle <[email protected]> wrote:

> I meant to provide a link, but see that it did not come through.
>
> Here is the link to the Fed bank's letter.
>
>
> http://www.frbsf.org/economic-research/publications/economic-letter/2015/january/unemployment-wages-labor-market-recession/?utm_source=mailchimp&utm_medium=email&utm_campaign=economic-letter-2015-01-05
>
> That will provide their approach.  To paraphase, in previous recessions
> wages fell, in the current one, wages didn't fall commensurately, so there
> were "pent-up wage cuts" yet to be made.  Made sense to them -- but not to
> me.
>
> Gene
>
>
> On Jan 5, 2015, at 2:13 PM, Robert Naiman <[email protected]>
> wrote:
>
> > what?
> >
> > can anyone explain this, from their point of view? what is the logic,
> from their point of view?
> >
> >
> >
> > Robert Naiman
> > Policy Director
> > Just Foreign Policy
> > www.justforeignpolicy.org
> > [email protected]
> > (202) 448-2898 x1
> >
> > On Mon, Jan 5, 2015 at 2:10 PM, Eugene Coyle <[email protected]>
> wrote:
> > The Federal Reserve in San Francisco has looked into the question of why
> wage growth is so slow.
> >
> > I have not read the full letter but I think sharing the beginning with
> you is very important.
> >
> > here it is:
> >
> >
> > FRBSF Economic Letter
> >
> > 2015-01 January 5, 2015
> > Why Is Wage Growth So Slow?
> > Mary C. Daly and Bart Hobijn
> >
> > Despite considerable improvement in the labor market, growth in wages
> continues to be disappointing. One reason is that many firms were unable to
> reduce wages during the recession, and they must now work off a stockpile
> of pent-up wage cuts. This pattern is evident nationwide and explains the
> variation in wage growth across industries. Industries that were least able
> to cut wages during the downturn and therefore accrued the most pent-up
> cuts have experienced relatively slower wage growth during the recovery.
> >
> > Read full article
> >
> >
> > IT IS THOSE PENT-UP WAGE CUTS !!!!!!
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-- 
Cheers,

Tom Walker (Sandwichman)
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