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I am going to take a contrary position and say this is a positive. The reason why is employers are responding by bring in more of the marginal into the workforce. If wages start to rise the underclass will remain unemployed and excluded.

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This kind of argument is less of a rationalization and more of public relations spin. It ignores the increase in consumer spending that comes with raising wages. In fact, it completely depends on skating over that fact.

It is neither a rationalisation nor PR spin. Until everyone who wants a job has a job then wages rises will limited the participation of the marginal in the job market. It is a value call if greater participation or greater income of those who already have a job is more important.

What is more of an issue is that the fed will kill the economy to ensure wages don't rise. As soon as there is the slightest sign that wages are rising interest rates will be jacked up - it is only inflation when wages rise, not asset prices.

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