Chairman of the Council of Economic Advisers Kevin Hassett said the Tax Cuts and Jobs Act may be able to help solve the problem of stagnant wage growth in the United States.
Speaking at a Cato Institute event on Thursday, Hassett said tax reform could lead to about $4,000 in higher wages for a typical family in America.
"The economy up until this year has been very much disappointing, and if you look at real wage growth, it's been as bad as you've ever seen in the recovery," Hassett said. "We found a really interesting disconnect that is this: Historically if profits go up then wages go up and if profits go down then wages go down. The correlation is really almost perfect but the link between profit growth and wage growth has just disconnected."
More @ The Washington Free Beacon
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