Source: Torsten Sløk, Ph.D., Deutsche Bank Research
Real Wages Are Rising
March 10, 2015 12:30pm by Barry Ritholtz
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And about time, no?
Need some time to take up the labor market slack which was the Legacy of Supply Side Idiocy, Part Deux….
Are these global real wages, US, EU, or German?
This chart implies different things for each of those groups. My guess is that it is for the US,
But regardless of what group it represents, a significant chunk of the early 2015 spike is due to the YoY comparison with a year ago, when the same YoY comparison was plummeting. But the net of it is that a gradual increase in real wages appears to be the Real Deal.
If it does turn out to be a chart of global real wages, the impact of a rising middle class in China makes interpretations a tad murky.
the point is, global disinflation is “covering up” domestic US inflation which probably is running at 3%. Real Wages then tells us a lot about the economy. The labor market is clearing.