Real wages, because we only measure the real wages of those in work, would thus remain high, even while there’s those millions earning nothing from the marketplace. And what is being missed here is that this result, real wages fall in a recession, is exactly what all that painful reform of the labour market has been about over the decades. If as and when a recession comes then it is wages that take the hit, not employment. They predicted that in 2021 wages will still not be as high as they were in 2008 as it criticised the “dreadful” impact on workers. Which means that either all incomes can fall by 10% of the incomes of 10% of the people can fall by 100%.

Source: Forbes November 25, 2016 08:58 UTC