Wages are rising quite rapidly at the lower end of the payscale. We operate 600+ locations nationwide and our labor cost was up 5% in 1Q. Largest increases were on the west coast and “hot” cities like Austin, Nashville, etc. Ultimately, you do solve labor with wage increases, but that does put limits around economic growth as expected returns are lowered on new projects (offset in part or fully by increased consumer spending).
And remember the Tax Bill that substantially cut corporate/business taxes.
That’s GOT to be helping, no?
Only in the short term. Higher wages lead to increased savings, which, being necessary to create the loans for investment, is the seed corn of economic growth. The suppression of wages and diminished economic growth have been inextricably intertwined over the past few decades.