Categorized | General Interest

Misusing Health Care Costs

The Administration is trying to blame rising health care costs for the stagnation of wages. Hmmmm…well, yes, in some case, companies are socked with higher heath care costs and, therefore, aren’t raising wages…okay, this point is very narrow because it avoids the debate, just for the moment, on the huge hauls that CEOs are making off with in pay and benefits and the fact that even though productivity is still rising workers are not getting the benefits of increased productivity.

BUT, the main point today is this: how can you explain the decline in wages for workers who have no health insurance? You can’t–as our friends from the Economic Policy Institute point out when it reports that “health insurance costs cannot explain the recent decline in wages for the lowest-paid workers because so few of them are covered by health insurance.”

The whole short discussion is here.

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