Recent legislation has been touted as industrial policy. However, it has not reduced income inequality, and he decline in unionization in the manufacturing sector dropped to 7.7 percent.
The basic story is simple: policies that give more money to people at the top are inflationary. it is not surprising that even mediocre CEOs can get paychecks in the tens of millions of dollars annually.
The Fed’s high interest rate approach to stemming inflation is about reducing the bargaining power of workers, and especially workers at the lower end of the wage ladder.
The share of unemployment due to people who voluntarily quit their jobs is usually seen as a good measure of labor market strength. It shows people’s confidence that they will quickly find another job after quitting.
