Many Americans feel as if workers’ compensation growth has been horrible over the last decade. Well, if you’re talking about wages alone then it has been.
But if you’re talking about total compensation, there were actually some pretty decent hikes in the amount companies paid for each employee from 2000 – 2006. Americans just didn’t feel them because soaring healthcare costs ate them up.
This implies that if healthcare cost inflation continues or, worse, intensifies due to regulatory change or just the current broken system, you can then expect that American workers’ future wage increases will remain horrendous since, any hikes to total employee compensation will continue to just funding increasingly expensive healthcare.
(Chart via Goldman Sachs, Global Themes And Risks, April 2010)
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