By Paul Craig Roberts: Do the Wall Street
Journal’s editorial page editors read their own newspaper? The frontpage
headline story for the Labor Day weekend was “Low Wage Growth
Challenges Fed.” Despite an alleged 4.4% unemployment rate, which is
full employment, there is no real growth in wages. The front page story
pointed out correctly that an economy alleged to be expanding at full
employment, but absent any wage growth or inflation, is “a puzzle that
complicates Federal Reserve policy decisions.”
On the editorial page itself,
under “letters to the editor,” Professor Tony Lima of California State
University points out what I have stressed for years: “The labor-force
participation rate remains at historic lows. Much of the decrease is in
the 18-34 age group, while participation rates have increased for those
55 and older.” Professor Lima points out that more evidence that the
American worker is not in good shape comes from the rising number of
Americans who can only find part-time work, which leaves them with
truncated incomes and no fringe benefits, such as health care.
Positioned right next to this factual letter is the lead editorial
written by someone who read neither the front page story or the
professor’s letter. The lead editorial declares: “The biggest labor
story this Labor Day is the trouble that employers are having finding
workers across the country.” The Journal’s editorial page editors
believe the solution to the alleged labor shortage is Senator Ron
Johnson’s (R.Wis.) bill to permit the states to give 500,000 work visas
to foreigners.
