Michael Harris PhD
Fed Raises Interest Rates and are wrong! No good reason for this and it will hurt wages! (Just as I wrote in March 21 2018! https://bit.ly/2HMpFWI) Its time for new economic thinking! The risk of high inflation is minimal, yet, “the rise in consumer prices over the last year has effectively wiped out any wage increases for nonsupervisory workers…” In other words, despite full employment, wages are not increasing! This reality contradicts economic modeling that suggests that “a tight labor market, with low unemployment will result in wage increase of 4%! What is the purpose of raising interest rates while the U.S is still struggling with its most significant challenge: wages stagnation! This has led to increases in inequality and poses a challenge to our democracy and the American dream! The U.S. economy has experienced long-term real wage stagnation. The fact is that the median income for a worker in 2017 was only slightly more than in 1979! Raising interest rates will hurt an entire section of the population that is struggling! I believe that the FED interest rate increases continues an obsolete theory. Resorting to the antiquated monetary and fiscal policies of the past clearly makes no sense at this time. https://nyti.ms/2JNmUcP
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