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wage labourer English
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Unions, too, are resisting the necessary wage reductions, and public and private debtors fear the prospect of insolvency if their assets and revenues are assessed at a lower value, while their debts remain unchanged.
When they eventually find work, it will be at a much lower wage.
That would widen the wage distribution, create jobs, and maintain the living standard of the poor.
Whereas some German companies persuaded workers to accept wage cuts to help weather the financial crisis, wages across the southern periphery have been marching steadily upwards, even as productivity has remained stagnant.
Nor are the non-poor faring particularly well, as wage growth has remained virtually flat for a very long time, even as corporate profits are booming.
Falling employment lowers wage and salary incomes.
Productivity growth was strong, but far outpaced wage growth, and workers' real hourly compensation declined, on average, even for those with a university education.
In particular, the US is underinvesting in three major areas that help countries to create and retain high-wage jobs: skills and training, infrastructure, and research and development.
This proposition overturned the previous Keynesian orthodoxy that macroeconomic policy should aim at full employment, with the control of inflation left to wage policy.
Demand for low-cost Mexican labor by US employers and the 10-1 wage gap between the two countries pushes 350,000 Mexicans to risk their lives every year for better paid jobs north of the border.
The more trade unions defend existing wage structures, and the lower productivity growth is, the longer the slump will be.
Such a pact would oblige governments to use fiscal and wage policies as well as overall economic policy to achieve external balance.
The Spanish government, for example, could have met Spain's building boom and foreign-trade deficit with tax increases or by urging domestic wage restraint.
A wage premium based solely on citizenship is grating.
Contrary to popular perception, the public-sector wage bill is only of marginal importance.
Here, too, the record since 1980 has been patchy, despite the huge deflationary pressure exerted by low-wage competition from Asia.
In the 1960's, Keynesian policies delivered the illusion that everyone was benefiting, with high levels of employment and significant wage growth.
The reason is clear: by taking time to set the stage for liberalization, governments hoped to limit the initial spike in price inflation, thereby avoiding a wage-price spiral and curbing capital flight.
Falling employment lowers wage and salary incomes. The higher prices of food and energy depress real incomes further.
The US and Europe are in direct competition with Brazil, China, India, and other emerging economies, where wage levels are sometimes one-quarter those in high-income countries (if not even lower).
If inflation continued, the country's real exchange rate would appreciate, the demand for its exports would fall, unemployment would increase, and that would dampen wage and price pressures.