U.S.: The Win Win In Slowing Labor Costs

It's a boost for profits--and consumers still have plenty in their pockets

Economists must be feeling like Lewis Carroll's Alice about now. On their trip through this economic Wonderland, they have watched superheated growth and falling inflation coexist for three years. And now, yet another paradox has arisen: Amid the tightest labor markets in a generation, wages and benefits of American workers, which had been accelerating since 1994, have suddenly begun to slow down. Curiouser and curiouser.

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