- Advertisement -
- Advertisement -
News'You Probably Are Going to See a Continuation of'...

‘You Probably Are Going to See a Continuation of’ ‘Negative Real Wage Growth’


- Advertisment -

On Friday’s broadcast of CNBC’s “Squawk Box,” Economics Professor at the University of Chicago Booth School of Business Austan Goolsbee, who served as Chairman of the Council of Economic Advisers under President Barack Obama, praised the number of jobs added in July, but pointed out that if GDP is declining at the same time a large number of jobs are being added, “it has to mean that productivity’s going down,” and we will likely “see a continuation of this kind of negative real wage growth.”

Goolsbee said, “I mean, this is a jaw-dropping number. There has never been a time when we got the unemployment rate down this low, where we’re adding 500,000 jobs. I mean, I thought that, given all of the rate increases, that we would probably have a disappointment or a miss. You’re never going to hear me criticize a jobs number where we got a half-a-million jobs. I would highlight there are two areas of, not weakness, but danger. The first is, if you’ve got GDP shrinking when you’re adding jobs at this kind of rate, it has to mean that productivity’s going down, and if productivity’s going down, what that’s going to imply for wages is not great. And so, you probably are going to see a continuation of this kind of negative real wage growth. But the second thing is this is fundamentally not stable. There are not enough people to keep adding 500,000 jobs a month. So, on a pretty rapid order, that’s — it has to stop. We have to reach what is a de facto full employment, and then the numbers are not going to be as big. And so, people can’t be surprised when that happens.”

Follow Ian Hanchett on Twitter @IanHanchett

- Advertisement -

Latest news

Who is Yon González? Wife, Net Worth, Relationships, Wiki

Contents1 Who is Yon Gonzalez?2 Yon Gonzalez Wiki- Age, Childhood, Siblings, and Education3 Career Beginnings and Immediate Success4 Continual...

Horror for witnesses as girl, 11, dies on birthday trip to water park

A girl of 11 died at a water park birthday party after she went missing on a giant inflatable...

The innocent grandmother driven to an early death after being wrongly accused over missing Gaia Pope

On the day she disappeared in November 2017, teenager Gaia Pope had knocked on the door of the pensioner...
- Advertisement -

Senate Democrats pass their CRAP climate, tax, and health care bill (yeah, it sucks) – twitchy.com

Senate Democrats just voted to raise taxes during a recession.Something even Obama himself said was a bad idea.Yay, Democrats.Breaking:...

Teen Boys Allegedly Punch 6-Year-Old Girl, Steal Her Scooter & Flee – Crime Online

A group of New York teens is accused of punching a young child and then...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you

- Advertisement -