Bill Cheney Wages Quotations

Many businesses see statistics showing economic growth as a cruel joke. Competition is still brutal, wages are still rising, prices are still flat or falling, and profits are as hard to find as they were a year ago.

I don't think it really suggests there is any inflation developing -- a 0.3 percent rise in wages is pretty manageable. But it's a pretty positive report; it suggests that the overall jobs market is pretty healthy.

The rise in wages of 6 cents might cause jitters, but wage inflation is less of a worry now, especially with productivity still growing at a healthy clip. As the economy slows, the unemployment rate will continue to inch up and wage pressures should ease further.

There must be some serious gains going on in either profits or wage rates. If it's going to profits, we should see more capital spending and hiring ahead, and if it's going to wages or lower prices, that should sustain consumption growth. Either way, it's good for the outlook.

In principle, rapid productivity should make wages rise, but it seems that until the job market tightens up a bit, all the productivity gains flow to corporate profits.