American Workers Should Expect Largest Pay Increase in Years

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A survey conducted by the Federal Reserve Bank of New York found U.S. consumers expect to see the fastest wage growth in years.

Consumers polled in January anticipated enjoying an average earnings rise of 2.73 percent, which is the largest monthly increase since the Fed starting collecting the data in 2013, according to Bloomberg.

“The data jibe with a Feb. 2 Labor Department report which showed that U.S. average hourly earnings rose 2.9 percent from a year earlier in January, marking the fastest pace of the expansion,” the news outlet explained.

Wages have been the last measure to see improvement since the end of the Great Recession, CNN Money reported.

The Federal Reserve poll also found 39 percent of consumers felt their personal finances were better than a year ago, and 46 percent believe they will be better in a year than they are now. Both statistics represent a high mark since the Fed began gathering the information.

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“It’s too early to call this a trend but the breakout (in wage growth) is very welcome news,” said Robert Frick, chief economist at Navy Federal. “It’s a very big deal, let’s hope it continues.”

“There is no question that employers are now having to be more aggressive to compete for workers,” added Peter Harrison, CEO of Snagajob, a jobs platform focused on hourly work.

Do you think President Trump's policies are responsible for wages going up?

Hadley Heath Manning, policy director for the Independent Women’s Forum, told The Western Journal that rising wages are having a real impact on American families.

“These pay increases are long overdue after years of stagnant wage growth,” she said. “It’s easy to focus on economic indicators at the national level, but around the kitchen table these raises mean real changes for American families: new clothes or school supplies, a household repair, a vacation or additional savings for education or retirement.”

“It’s no secret why wages are finally rising: Tax cuts and deregulation are allowing businesses to share greater success with their workers,” Manning added.

Garrick Taylor, with the Arizona Chamber of Commerce, described the wage growth news as “very encouraging” and anticipated workers in The Grand Canyon State are well-positioned to reap the rewards of the new business climate created by the Republican tax reform law combined with the state’s already pro-business policies.

President Donald Trump tweeted on Sunday that over 4 million Americans have received bonuses and/or pay raises as a result of the tax reform bill passed in December.

House Speaker Paul Ryan also touted the impact of new tax law on Wednesday, saying it is responsible for helping create a very pro-business growth and pro-worker climate.

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“In less than eight weeks, we have tracked nearly 350 companies that have handed out bonuses as a result of tax reform,” he told reporters on Capitol Hill Wednesday. “Every day we hear more about this, and we know that there are plenty of other small businesses who are doing the same, that are doing it under the radar.”

The speaker said by the end of the month, 90 percent of American workers will see higher take-home pay as a result of tax reform.

“This momentum is generating more confidence in our economy,” Ryan stated. “According to a new survey, a record number of small business owners say that now is a good time to expand.”

Bloomberg reported on Tuesday, “Six of the 10 components that make up the small-business optimism index increased in January, producing one of the strongest readings in the 45-year history of the survey.”

National Federation of Independent Business chief economist William Dunkelberg and policy analyst Holly Wade credit the tax law with producing the “most recent boost to small-business optimism.”

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Randy DeSoto has written more than 1,000 articles for The Western Journal since he joined the company in 2015. He is a graduate of West Point and Regent University School of Law. He is the author of the book "We Hold These Truths" and screenwriter of the political documentary "I Want Your Money."
Randy DeSoto is the senior staff writer for The Western Journal. He wrote and was the assistant producer of the documentary film "I Want Your Money" about the perils of Big Government, comparing the presidencies of Ronald Reagan and Barack Obama. Randy is the author of the book "We Hold These Truths," which addresses how leaders have appealed to beliefs found in the Declaration of Independence at defining moments in our nation's history. He has been published in several political sites and newspapers.

Randy graduated from the United States Military Academy at West Point with a BS in political science and Regent University School of Law with a juris doctorate.
Birthplace
Harrisburg, Pennsylvania
Nationality
American
Honors/Awards
Graduated dean's list from West Point
Education
United States Military Academy at West Point, Regent University School of Law
Books Written
We Hold These Truths
Professional Memberships
Virginia and Pennsylvania state bars
Location
Phoenix, Arizona
Languages Spoken
English
Topics of Expertise
Politics, Entertainment, Faith




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