US Raises Expected To Cool As Labor Market Levels

Over the last several decades in American politics, Republicans and Democrats have battled with each other over many cultural and social issues that have dominated political discourse. While president Bill Clinton famously quipped in the 1990s that “It’s the economy, stupid” that matters most to the majority of American voters when heading to the polls, it appears that economic and financial issues increasingly only matter to one side of the political spectrum. Over the last several decades a massive political realignment has occurred in the United States in which more affluent, wealthy, and urban voters have realigned themselves with the Democratic party while working and middle class voters have begun to shift towards the Republican party. Historically, Democrats had done exceptionally well with working class voters and had relied on these people to form the base of their party.

The truth of the matter is that Democrats have become increasingly collectivist and worked to the detriment of ordinary working Americans in terms of economic policy over the last several years. Democrats have championed the role of government, preferring to increase its size, spend exorbitantly, and impose high taxes and suffocating regulations on the citizenry of the United States. While Democrats have often been supporters of big government and more regulation (which historically resulted in many wealthy business owners and corporate elitists aligning with Republicans), their increased emphasis on the economic promotion of social issues and the intertwining of the two in terms of policy has alienated key voters.

Wages have been largely stagnant for many Americans as inflation continues to crush the working class. Employers in the United States on average have planned increases of about 4%, which is down by 0.4% in comparison to last year when increases neared 4.4%. Some experts claim these increases are “healthy”. Economic uncertainty remains realistic in the United States and the state of the national middle class remains somewhat poor amidst rising costs.