American Workers Are Destroying Corporate Profits

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For the first time in a while, American workers are truly doing fairly well:

U.S. businesses are facing a problem that many haven’t thought about in years—rising wages. That could be one factor that tips over a market that has the uncomfortable combination of declining earnings and high valuations.

Workers, for the first time since the financial crisis, are demanding raises and actually getting them—or they are walking. The number of workers quitting jobs has increased, a sign they are confident they can get new jobs, and companies are loathe to lose good workers. It now takes 27 days to fill a job, the highest since at least 2001.

….“More revenues are going into the pockets of workers,” said Brian Schaitkin, a senior economist at the Conference Board, a corporate-research organization. “Higher wages are going to place downward pressure on corporate profits.”

Uh oh. Downward pressure on corporate profits. Must be time for the Fed to raise interest rates and put a stop to this nonsense. After all, inflation has skyrocketed recently to…about 1 percent.1 Put that together with actual wage gains for workers and we’re in a heap of trouble. Something must be done quickly.

1Yes, yes, I know the Fed actually uses core PCE as its preferred measure of inflation. But that’s pretty low these days too. And inflationary expectations are also low. Really, inflation just isn’t a big worry at the moment.

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Truth #1: The chaos is the point.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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