JW Mason — The Non-Accelerating What Now Rate of Inflation

The change in the wage share is equal to the increase in average nominal wages, less inflation and the increase in labor productivity. This is just accounting. So Wolfer's condition, that wage growth not exceed the sum of inflation and labor productivity growth is, precisely, the condition that the wage share not rise. If we take him literally -- and I don't see why we shouldn't -- then the Fed should be less concerned to raise rates when inflation is higher. Which makes no sense if the goal is to control inflation. But perfect sense if the real concern is to prevent a rise in the wage share.

Like Kalecki said in "Political Aspects of Full Employment". Neoliberalism is about maximizing the owner-manager share to worker share as rent extraction.

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The Non-Accelerating What Now Rate of Inflation
JW Mason | Assistant Professor of Economics, John Jay College, City University of New York