freeman3 wrote:I am not complaining about the wage increases, RJ. I just was sort of fascinated by this statement you made: "As Ricky mentioned, the median income had not been increasing, and now it has. On the flip side, we may start having inflation and the fed may have to raise interest rates to chill us, especially if we restrict immigration."
If we get real median wage increases...then that likely only can happen in our current economic system when unemployment gets very low...and then we have to raise interest rates to stop the economy from overheating. So if that's true (and the above is my interpretation of the implications of your statement) then we really cannot have real median wage increases in the way our economy is structured.
And that sucks.
Economies are really complicated. Trump's base wanted him to improve the situation of the working man. These are people who felt neglected by the Democrats who are often insulated from their own policies. (My Democratic friends in Mass. don't want to drill oil in Alaska because it will ruin the environment and cause global warming. Unemployed guys in Alaska may have different concerns. BTW, drilling for oil is part of the reason that Norway has a good economy.)
The regulatory relief has been a positive. But if the economy overheats we will have a problem. Personally my preference is that we open up trade and take in more legal immigrants based on merit. But I'm not a Trump supporter and I'm also insulated from these trade and immigration policies.
The market has been running with historically low interest rates. That's good for asset values, and good for companies trying to borrow money, but has dangers of its own. It also hurts retirees who can no longer earn any interest on bonds. That's starting to change for them. There are winners and losers surrounding all of these things. It's certainly too complicated for either political party to control.
However, we can have real median wage increases, and the only way to get there is via productivity. Companies have to be more productive, which is greatly assisted by both regulatory relief and tax relief. But individuals also have to be more productive. They have to take care of their own productivity. (training, education, working hard, trying to solve your own economic issues, etc.)