There’s no doubt that the U.S. economy is on solid footing. While data, including gross domestic product, consumer confidence and jobs additions suggest that the U.S. economy is growing, there is one number that continues to concern market experts: wage growth.
The Bureau of Labor Statistics released its latest monthly jobs report on Friday, and it was a bit of a mixed bag. U.S. employers added 261,000 jobs in October as labor conditions returned to normal after devastating hurricanes hit the country, but ultimately missed expectations. Average hourly earnings, however, decreased.
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Stagnant wage growth has been a concern for some time, with consumer spending such a big component of U.S. economic growth. If workers are not seeing their wages increase, how will spending increase? Many see one way to fix this: tax reform.
In October, average hourly earnings decreased by 1 cent to $26.53, and the unemployment fell to 4.1% from 4.2% in September.
"We can’t say we are at full employment until the wage number comes up,” Kings College professor Brian Brenberg said during an interview on FOX Business’ Mornings with Maria. “This is why tax reform is important.”
On Thursday, the House Ways and Means Committee unfurled its tax reform bill, which included a cut to the corporate tax rate to 20% from 35% and lower tax rates for many Americans. Chair of the House Ways and Means Committee Kevin Brady (R-Texas) said during a press conference that it will ensure that “every American, at every level, will see more of their hard earned dollars.”
National Economic Council Director Gary Cohn told FOX Business’ Stuart Varney on Friday that when it comes to tax reform, “most importantly we are trying to drive economic growth and wages for middle class Americans.”