(National Sentinel) Good Times: In the first full month after President Donald J. Trump and congressional Republicans passed historic tax cuts, Americans are confident that 2018 will be a banner year in terms of wage growth.
As reported by Bloomberg Businessweek, Americans are expressing more optimism about wage growth than they have in years. Consumers expect earnings to jump some 2.73 percent in 2018, the most since data collection began in 2013, according to a New York Fed survey released Monday and conducting in January.
Last month was just the third in the survey’s 56-month history in which wage-growth expectations surpassed consumer price inflation, which fell slightly to 2.71 percent.
Meanwhile, the tax cuts are also having another not-wholly-unexpected impact: The federal government ran a surplus in January, having collected more in taxes than it spent.
As CNS News reported, “the Treasury collected approximately $361,038,000,000 in total tax revenues and spent a total of approximately $311,802,000,000 to run a surplus of approximately $49,236,000,000.” And while the government is on track as of now to run a deficit this year of about $175.7 billion, that could change if tax revenues rise from additional economic activity brought on by consumers having additional disposable income to spend.
Also, Bloomberg Markets reported that an increased number of small businesses in the U.S. believe that now is a good time to expand, which will mean more jobs:
Six of the 10 components that make up the small-business optimism index increased in January, producing one of the strongest readings in the 45-year history of the survey. The figures show sustained, sturdy business sentiment since the November 2016 election. A measure of plans to boost capital spending in coming months increased by 2 points to 29 percent, consistent with other data indicating robust outlays for equipment. One in five small companies said they plan to boost hiring, unchanged from the prior month, as finding qualified workers remains problematic and underscores a tight job market.
Tighter job markets tend to translate into higher wages as employers compete for quality workers.
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