GAZB - A Response To Kevin Drum: For Wages And Inflation It's All About The Price Of Gas
By Dan Crawford
Last week Kevin Drum had the following inquiry:
[H]ow is it that wages can go up but overall inflation remains so subdued? That seems to be the real disconnect here. During the dotcom boom, wages went up but inflation remained around 3 percent. During the housing bubble, wages didn't go up and inflation remained around 3-4 percent. Right now, wages are going up but inflation has remained around 2 percent. Wages no longer seem to have much correlation with overall inflation.
I haven't seen anyone address this specific issue, but I'd