Compensation has become a very contentious issue within the developed world of late. Economies are continuing to struggle. The EU has created a form of quantitative easing designed to restore wage growth and stimulate the economy. China is slowing as it transitions into a consumer driven economy as oppose to an export driven economy. Brazil is struggling with massive inflation and unemployment resulting in a recession for the country. America continues to grow but only at a 2% rate. This is well below the 3% GDP growth that many economist and experts are expecting. The world is lagging behind its historical trends of growth and development. As a result, compensation growth will naturally lag. Issues abound about how to properly stimulate compensation and wage growth throughout the world. The issue is particularly important for America, with 70% of GDP resulting from consumption of goods and services. This consumption will not occur without proper wage growth. Currently inflation is running at a 1.4% rate. This is below the Federal Reserve's target of 2% growth. Wages however have remained stagnant resulting in a loss of purchasing power by lower and middle class consumers. This loss of purchasing power has created a litany of issues in regards to professional compensation (Card, 1995).
In addition, the overall macro environment can cause wages to slow. This will be an issue that professionals must face for years to come. Slower wage growth is directly correlated to sluggish macroeconomic development. Businesses often raise wages when business is plentiful and consumer confidence is high. Currently…
World War II WW II Manhattan Project: Begun in 1939, this project was the codename for the United States' secret Atomic Bomb project. With America's entry into the war, the project grew substantially and ultimately involved more than 125,000 people, 37 separate installations, 13 university laboratories and a number of the nation's top scientists. (History.com: "World War 2: Atomic Bomb") In 1942 the project was put under the control of the U.S.
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