The United States economy has over the past years supplemented more than 270,000 new jobs leading to a marked decrease in joblessness. However, the confusion that remains is why the labor market is strong, and the wages cannot cope up with the demands of inflation. (Stiglitz, 2015) The middle-class Americans have a difficult time coping up with the prices of basic commodities rise including rent, food, school fee, etc. The economic data have indicated that wages have grown with a margin of only 2.5% each year while inflation, on the other hand, has had an average increase of 2%. Economists have had a tough time explaining this, as they have always predicted that an improving economy would pull the wages upwards. There are however a couple of solutions that the US government should employ in a bid to ensure that there is a stronger wage growth in the years to come.
The first solution to slow wage growth is the increase in quality of the labor force. The wage growth has stagnated for many years in the US due to the insufficient amount of qualified labor. The United States has failed in producing competent workforces that can adapt to the rapidly changing technological world. Conventionally, when a country is producing skilled laborers in different fields, the demand for their services will be higher, and therefore the wages will have to increase to match their skills. Quality labor is mandatory for the US to match the demands of the market industry ( Cha & Weeden, 2014).
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The second important in solving wage stagnation problems is the increase in labor productivity. Many companies including those run by the government peg their salaries on the labor productivity. If the workers' output is weak, then, therefore, the wages will keep stalling. It is the role of the government to ensure that its labors produce a maximum output through enabling a more conducive environment for their work. This is more preferable because the increase of the wage is down to the performance of the workers with little government influence.
The Responsibilities of Levels of Government
Federal Government
The Federal Government has major roles including defense and national relationships such as foreign relations and foreign trade. It also has a duty to protect the citizens' constitutional right. Also, its duties include the establishment of the federal courts and the coining of money. The federal government has a role in taxation to ensure that revenue is collected for government's business as asserted by Dafflon (2015).
State Government
The state government is responsible for every task that is not outlined as a Federal responsibility. The state governments are mandated to take charge over schools, hospitals, environmental conservation, and transport including rail and road, agriculture and fishing among many others. Every state has its constitution that allows it to set out how it wishes to be governed.
Local Government
It includes counties and municipalities. They are responsible for parks and recreational services, fire departments and police, emergency medical services, public works, etc. The local governments must, however, be granted the power by the state. They are headed by mayors and city council.
References
Cha, Y., & Weeden, K. A. (2014). Overwork and the slow convergence in the gender gap in wages. American Sociological Review , 79 (3), 457-484.
Dafflon, B. (2015). The assignment of functions to decentralized government: from theory to practice. Handbook of multilevel finance, Edward Elgar, Cheltenham , 163-199.
Stiglitz, J. E. (2015). Rewriting the rules of the American economy: an agenda for growth and shared prosperity . WW Norton & Company.
