It’s our old friend Karl Marx who called the thing about the workers’ wages right. Full employment is indeed the workers’ best friend and now that we’ve got it we can see wages rising at their strongest rate for a decade, 3.1% year on year. We can also run this the other way around, if we’re seeing such strong wage growth then we’ve got to be pretty much at full employment.
We can also use this as an example of both classical and neoclassical economics being right.…
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