The other day I wrote about a campaign by the International Trade Union Confederation to push the G20 to make hiking wages the cornerstone of any policy to create a sustained and healthy global economy . The Economist agrees.

The magazine had a relatively long piece in its September 6th edition (subscription paywall) entitled,  “The big freeze: Throughout the rich world, wages are stuck”. After looking at a variety of countries, and pronouncing the situation grim, the last paragraph really is what mattered:

Wages, of course, are not just important to central bankers. Weak pay saps revenue from income tax and social-security contributions, making it harder for governments to mend public finances. The lack of growth in real wages hurts household finances, too, keeping consumers tight-fisted. A healthy and sustained recovery in the rich world will remain elusive until the pay squeeze ends. [emphasis added]

As I said in my original piece, duh.