“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.
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David Cay Johntson: Flat wages show the US doesn’t have a labor market
Government action is required to correct imbalance in employer power
Another warning sign of our fragile economy popped up Friday in the latest quarterly employment-cost-index report, which measures the total cost of labor to employers. The index rose by one-fifth of 1 percent – the smallest increase since the data series was launched in 1982.
Without real growth in wages the economy cannot grow because the capacity of people to buy goods and services – what economists call aggregate demand – will remain flat.
This is a problem that we can fix, and there are three obvious ways to address it. But it requires the involvement of government, which makes the rules governing the market. If there is one thing that centuries of experience have taught, it is this: Whatever the rules, businesses adapt.
Dean Baker: Bernie Sanders, Open Borders and a Serious Route to Global Equality
Some progressives expressed dismay last week to discover that Bernie Sanders, the Vermont Senator and candidate for the Democratic presidential nomination, doesn’t favor a policy of open immigration. While such a policy would undoubtedly allow billions of people in the developing world to improve their lives, there are not many people in the United States who relish the idea of the country’s population tripling or quadrupling over the next three or four decades.
It is hard to justify people in the United States living so much better and longer lives than people in places like Bangladesh or Burundi, just like it’s hard to justify the children of the rich and privileged in the United States living so much better and longer lives than their poorer counterparts, but there is not a plausible story where this inequality will be addressed by mass immigration. There are however more serious ways to think about addressing global inequality.
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