Wage growth outpaces inflation in USA, Canada and Japan G7, confirming what we previously called the Carl Lewis Effect. In this September update, we report little evidence of a wage-push spiral. Wage growth is not currently a primary driver of inflation. We are also sceptical of claims that the global economy is headed to an…
In our January Seaford Macro Update, we focus on inflation and wages in selected G7 countries. While inflation generally outpaces wages for the time being (meaning that real wages are negative), wage growth resembles the famously slow-starting sprinter who would nonetheless continue to gather pace after his rivals began to run out of steam. Likewise,…
Britain faces a wave of strikes that has been likened to the 1979 ‘Winter of Discontent.’ Most industrial action is taking place in the public sector while what isn’t, is effectively quasi-public, like the railway strikes against private companies with government franchises. The principal issue is compensation, which in real terms has declined for most…