US Economy: On Wages

2 quick links:

http://bigpicture.typepad.com/comments/2008/04/stagnant-wages.html

http://www.nytimes.com/2008/04/09/business/09leonhardt.html?_r=1&oref=slogin

Now I don’t agree that the US government has failed to bring about a similar governmental investment as mentioned towards the end of the NYT article and I don’t hear the candidates saying anything of such program (and when they do its very vague) but I do agree with the following;

Now, though, we appear to be out of bubbles. It’s hard to see how the economy will get back on track without some fundamental changes. This, I think, can fairly be considered the No. 1 economic project awaiting the next president.

Fortunately, there is an obvious model waiting to be dusted off. The income gains of the postwar period didn’t just happen. They were the product of a deliberate program to build up the middle class, through the Interstate highway system, the G. I. Bill and other measures.

Governmental investment is incredibly needed along with ending the occupation of Iraq & major overhaul of the housing & financial sectors.  Many economists agree: consumption is key to the US economy and for this to occur the above must occur.  No not the CEO or Wall Steet banks NO!  the workers, the normal people, the consumers need to be paid.  I rather worry about demand-pull inflation than this non-sense that is happening now.  And no I don’t mean any stupid bubbles that are market failures caused by terrible oversight.