Megan McArdle writes for Bloomberg View about wage stagnation - its causes and lack of cures. Most articles on this topic are either (a) simplistic to the point of idiocy, or (b) complex enough to glaze the eyes of readers. Economists are normally guilty of (b).
Refreshingly, McArdle strikes a readable middle ground. She points out why the sad fate of most private sector unions is not the cause of wage flatlining. She also gives plenty of credit to competition from overseas and automation. And finally, she reminds us just how mind-rotting and awful those high-paying assembly line jobs were.
A factor she doesn't mention is the millions of illegal immigrants seeking, for the most part, unskilled work. Simple microeconomics tells us that as labor supply increases, wages decrease if demand is relatively constant, as it has been.
McArdle gives essentially no solutions to the wage stagnation problem, because there are no society-wide answers. However, some talented individuals may be able to improve their own personal outcomes via education, hard work, and luck.
