A number of readers raised objections to my Friday post
about the low unemployment numbers, so I wanted to clarify
something. In the post, I pointed out that wage growth was starting
to trigger fears of inflation. Readers saw this as me looking for
bad news in a positive economic report, but quite the contrary. One
of the criticisms liberals have made about the Bush economy has
been that even though unemployment has been going down, wages have
been stagnant. I was countering these arguments by pointing out
that now not only are wages growing, but they're growing at a fast
enough clip to actually trigger fears of inflation.