Trump and the left-wing Democrats: A debate on the trade-off between wages and employment?
Donald Trump obvious ly clashes with left-wing Democrats (Ocasio-Cortez, Omar, Pressley, Tlaib). But it is important to note that he is boasting about his record on unemployment and employment in the United States and that they are protesting at weak growth in low wages and weak social welfare. Is there a choice between low unemployment with low wages and weak social welfare on the one hand and high unemployment with higher wages and more generous social welfare on the other ? A comparison across OECD countries shows that an income distribution skewed against wage earners is indeed associated with a high employment rate and a low unemployment rate.