Monday, November 21, 2016
Will Trump Increase Wages For American Workers ?
The following post is from Lawrence Michel at the Economic Policy Institute. In it, he details how Trump could increase worker wages.
The question though is not how Trump can raise worker wages, but whether he will institute policies that will do that. I don't think he will. Trump has always fought unions, and I doubt that will change. If any action is taken on unions, it will be to further weaken them.
He won't substantially raise the minimum wage either, and if he tried, his Republican cohorts in Congress would quickly kill it. They would like to abolish the minimum wage -- not raise it.
A huge infrastructure rebuilding program, would create some jobs, but by itself would not put much pressure on employers to raise wages. And if it was paid for by huge cuts in other government spending (instead of higher taxes on corporations and the rich), probably would not have any effect on wage (or overall job growth).
Trump's only real solution to higher wages and more jobs is to cut taxes for corporations and the rich -- not just a little bit, but by a massive amount. He says that employers will use the tax savings to create jobs (and raise wages). But the Republicans have been pursuing that kind of economic policy since 1980 -- and it has just resulted in stagnant wages and a growing income (and wealth) gap between the rich and the rest of America.
Will Trump create jobs and raise worker wages. I doubt it. He won't increase the minimum wage, strengthen unions, or increase government spending by taxing the rich and corporations more -- the only policies that could have a real effect on both demand (which creates jobs) and wage growth.
(NOTE -- The caricature of Donald Trump above is by DonkeyHotey.)