Sen Ron Johnson: Wages Rising Too Quickly
I got as an email.
Johnson is about the 8th wealthiest Senator as I recall.
UpNorthNews info@upnorthnewswi.com via gmail.mcsv.net
2:19 PM (3 hours ago)
to me
Ron Johnson: Wages Rising Too Quickly
Wisconsin Republican Sen. Ron Johnson said on a weekend interview program that addressing any labor shortage by offering better paychecks will trigger inflation—a condition happening now because the economy is awakening from a pandemic recession. But Johnson is alleging inflation would rise to levels not seen in nearly 40 years if paychecks were to continue improving.
"Increases in wage rates ratchet up and that creates permanent inflation," Johnson claimed in an appearance on WKOW-TV's Capital City Sunday. "So you may feel good about getting a five, or six, or seven percent raise but if general inflation is six, seven, or eight percent, that increase is just completely wiped out."
The annual inflation rate hasn't risen above 5.4% since 1983.
US Treasury Secretary Janet Yellen, a former chair of the Federal Reserve, says the "Fed" has several tools that can address inflation if it should rise beyond what's expected as a moribund economy comes back to life.
Johnson said wages should be raised only if employers think they need to. "Businesses pay what wages they can afford based on the competitive situation," he said.
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