Bill Gross Says Demographics Are Putting a Lid on Wages

The transcript discusses the state of employment in America, highlighting underemployment and the importance of the EU Six unemployment rate. It emphasizes the significance of wage growth for inflation, noting the Federal Reserve's interest in this area. Technological progress is considered a factor in wage stagnation, alongside long-term influences like demographics and deglobalization. The discussion draws parallels with Japan's static labor force and its impact on wages.

What is the significance of the U6 unemployment rate in the context of employment in America?

• It measures only the fully employed individuals.

• It includes underemployed and discouraged workers.

• It is the same as the U3 unemployment rate.

• It only considers high-wage earners.

Why is wage growth important for the Federal Reserve's goals?

• It stabilizes the stock market.

• It decreases the need for technological advancements.

• It is directly linked to increasing inflation.

• It helps in reducing the national debt.

How has technological progress historically impacted the workplace?

• It has had no impact on wage growth.

• It has replaced all manual labor jobs.

• It has introduced new tools and efficiencies.

• It has always led to a decrease in employment.

What is one reason suggested for the lack of wage growth despite technological progress?

• Increased global trade.

• New technological advancements.

• Higher education levels.

• Government regulations.

How do demographics influence wage growth, as seen in Japan?

• Demographics have no impact on wages.

• A growing labor force leads to higher wages.

• A static or declining labor force limits wage increases.

• An aging population always increases wages.