Morning Must-Read: Larry Mishel: Even Better Than a Tax Cut
…grow along with profits and productivity. There is no silver bullet, but the key is… to reverse decades of decisions that have undercut wage growth. We need to start with monetary policy…. The most important decisions… are those of the Federal Reserve Board…. Before raising rates, it is essential we achieve a robust recovery, with roughly 3.5 to 4 percent annual [nominal] wage growth…. Another short- to medium-term policy decision affecting wage growth is to avoid trade deals, such as the proposed Trans-Pacific Partnership, that would further erode Americans’ wages and send jobs overseas. And… bolster… labor standards and institutions… [by] raising the minimum wage… rais[ing] the salary threshold for overtime…. Protecting and expanding workers’ right to unionize… moderniz[ing] our New Deal-era labor standards to include earned sick leave and paid family leave… stronger laws and enforcement to deter and remedy wage theft…. Wage stagnation is… a result of a policy regime that has undercut the individual and collective bargaining power of most workers. Because wage stagnation was caused by policy, it can be reversed by policy, too.