Wouldn't fuller labour participation lead to higher wages?

In your recent monthly economic update, you suggested that Trump increasing labour participation by introducing import taxes would create a potentially catastrophic increase in the cost of living. However, wouldn't wages also go up due to the increased labour participation? I think any modicum of increase in wages would be dwarfed by the cost-of-living increase, but that may be mostly my gut intuition.

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  • Raymond Lim
    published this page in Ask Prof. Wolff 2016-12-14 23:15:31 -0500