Analyzing the American economy rate, Ted Bauman notes that it’s rising at a fast pace. He gives an example where the gross domestic product increased by over 2.3 percent. The economic analysts are optimistic that in the next six months, many companies might experience an increase in revenues. Some investments realized an increase in their assets that was attributed by customer confidence and in return appreciating in growth. However, Ted Bauman points out that despite the improvement of economic rate and growth in investments values, employees experience a reduction of wage rate from February 2018.
Through his experience, Ted can examine factors affecting wages. He notes that acceleration of economic growth, increase in benefits of competition, productivity optimization, employees’ motivation, and improvement in demand result from wages increase. Ted Bauman adds that the rate of unemployment in the United States of America has decreased since June 2107. Bauman admits that many people think that an increase in the employment rate should decrease a country’s average wage. Many economists are yet to understand the reason as to why the wages are stagnant despite the increase in economic growth rate.
Ted Bauman points out that the current job opportunities surpass the number of job seekers. Many economists believe that different corporations apply some strategies that might result in stagnation of wages despite the availability of job opportunities. Additionally, Ted Bauman notes that many companies do not increase wages because they want to improve their short-term returns. He warns that it can drastically affect the overall demand of the company’s revenue. Ted points out that the wages increase as economic growth accelerates but some people work hard to slow economic growth so that they stagnate wages.
Bauman warns that in the process of reducing economic growth, interest rates might shoot, production decrease and a reduction in investment might take place. Ted Bauman continues to advise that this technique might bring down the number of customers and the company may be forced to reduce the price of its products. He concludes by saying that if many companies in the United States accept to raise wages, the citizens might witness an increase in economic growth also. The demand might increase and trigger an increase in sales hence attracting more investors.
About Ted Bauman: www.talkmarkets.com/contributor/Ted-Bauman