I'm sure that you're familiar with the concept of NAIRU and that it doesn't appear to have any fixed value.
I'm sure that you're also aware that the US economy had very low unemployment accompanied with very low inflation during most of the decade of the 'nineties.
You are probably also aware that under the Employment Act of 1946 as amended by the Full Employment and Balanced Growth Act of 1978, there exists an affirmative legal duty to promote employment levels in the US and it is correctly said that the while the Fed is independent within the government, it is not independent of the government.
In any event, growth in real wages is not in itself either inflationary or a drag on business profits, since those wages are cycled back into the economy as consumption and higher employment levels support the higher output levels needed to supply that marginal consumption.
As Milton Friedman wrote, inflation is always and everywhere a monetary phenomenon.
There is nothing in American law or policy that allows for or promotes what you've expressed in your second paragraph.
Restraining real wage growth is also not in the interest of the owners of capital, since profits depend upon sales and sales depend upon demand and demand depends upon wages paid to those who ulitmately consume, directly or indirectly, everything produced.
I'm sure that you're also aware that the US economy had very low unemployment accompanied with very low inflation during most of the decade of the 'nineties.
You are probably also aware that under the Employment Act of 1946 as amended by the Full Employment and Balanced Growth Act of 1978, there exists an affirmative legal duty to promote employment levels in the US and it is correctly said that the while the Fed is independent within the government, it is not independent of the government.
In any event, growth in real wages is not in itself either inflationary or a drag on business profits, since those wages are cycled back into the economy as consumption and higher employment levels support the higher output levels needed to supply that marginal consumption.
As Milton Friedman wrote, inflation is always and everywhere a monetary phenomenon.
There is nothing in American law or policy that allows for or promotes what you've expressed in your second paragraph.
Restraining real wage growth is also not in the interest of the owners of capital, since profits depend upon sales and sales depend upon demand and demand depends upon wages paid to those who ulitmately consume, directly or indirectly, everything produced.