Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul class="summary-list"><li><keyword id="60973" type="PERSON" weightage="60" keywordseo="Biden">Biden</keyword>'s $4 trillion <a href="https://www.businessinsider.com/what-is-in-bidens-infrastructure-bill-package-american-jobs-plan-2021-3">infrastructure plan</a> promises to raise wages for some workers and create many jobs.</li><li>The spending plans resemble what <keyword id="6629386" type="PERSON" weightage="60" keywordseo="Henry-Ford">Henry Ford</keyword> and <keyword id="191583" type="PERSON" weightage="60" keywordseo="Jeff-Bezos">Jeff Bezos</keyword> did: both founders raised wages as their companies grew.</li><li>Ford and Bezos increased productivity, which signals that Biden's plan could lift the middle class.</li></ul><keyword id="1533678" type="PERSON" weightage="60" keywordseo="President-Joe-Biden">President Joe Biden</keyword> is a man of the middle class. At least, he's trying to be.He wants "good jobs, blue-collar jobs, jobs that pay well," he said in a White House conference at the end of March. And he wants to give the middle class a raise.His two-part <a href="https://www.businessinsider.com/what-bidens-2-trillion-infrastructure-plan-means-for-you-2021-4">infrastructure package</a>, promises to, if passed by Congress, create millions of jobs and give workers a raise. "It's time to build our <keyword id="34412" type="ORGANIZATION" weightage="100" keywordseo="economy">economy</keyword> from the bottom up and from the middle out," he said while <a href="https://www.businessinsider.com/how-bidens-middle-out-theory-works-to-boost-economic-growth-2021-4">unveiling the package last month</a>. Just how many jobs his package would create is definitely in the millions, but the exact number is unclear. The Biden administration has been messaging that the <a href="https://www.businessinsider.com/what-is-in-bidens-infrastructure-bill-package-american-jobs-plan-2021-3">$2.3 trillion American Jobs Plan</a> would result in <a href="https://www.bloomberg.com/news/articles/2021-04-02/biden-says-infrastructure-plan-will-create-19-million-new-jobs?sref=BLKWHazc">19 million jobs</a> over the next decade, citing a report from Moody's Analytics. But that report actually says 16.3 million jobs would come from natural job growth and the $1.9 stimulus legislation, and so 2.6 million new jobs would come from the infrastructure package. But that's still a lot of jobs. As <a href="https://www.businessinsider.com/biden-first-100-days-trickle-down-reagan-legacy-big-government-2021-4">Insider's Joseph Zeballos-Roig reported</a> at the culmination of Biden's first 100 days, this approach marks a break with 40 years of presidential <keyword id="6358883" type="UNKNOWN" weightage="60" keywordseo="politics">politics</keyword>, when the nation's chief executive incentivized big business, aka the private sector, to take the wheel. But it shares something in common with two of the greatest corporate chief executives ever: Henry Ford and Jeff Bezos.Raising wages has already been a big issue during Biden's first months as president. He campaigned on raising the <keyword id="562632" type="UNKNOWN" weightage="60" keywordseo="minimum-wage">minimum wage</keyword> from $7.25 to $15, but the $15 proposal was <a href="https://www.businessinsider.com/minimum-wage-struck-from-biden-stimulus-plan-2021-2">struck from his stimulus plan</a> for not meeting the rules of budget reconciliation. Now, the <a href="https://www.businessinsider.com/april-jobs-report-disappointment-us-economic-recovery-faltering-unemployment-crisis-2021-5">job-market recovery is faltering</a> while employers are <a href="https://www.businessinsider.com/labor-shortage-solution-pay-workers-higher-wages-2021-4">largely not raising wages</a>, and April surprised to the downside with a gain of just <a href="https://www.businessinsider.com/april-jobs-report-signals-new-economy-changes-experience-leisure-hospitality-2021-5">266,000 jobs</a>. The average worker hasn't received a raise since the 1970s, with hourly inflation-adjusted wages only growing by <a href="https://hbr.org/2017/10/why-wages-arent-growing-in-america#:~:text=The%20majority%20of%20Americans%20share,rather%20than%20through%20investment%20income.&amp;text=Since%20the%20early%201970s%2C%20the,growing%20only%200.2%25%20per%20year.ear.">0.2% a year</a>. The average wage as of 2018 had the same purchasing power as it did 40 years ago, <a href="https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/">according to Pew</a>. Biden's <keyword id="595080" type="PERSON" weightage="60" keywordseo="infrastructure-plan">infrastructure plan</keyword> could improve working conditions. The plan is focused not just on job creation via roads-and-bridges investment, but on <a href="https://www.businessinsider.com/how-bidens-new-infrastructure-plan-will-benefit-parents-2021-4">funding for care workers</a> and tax incentives for childcare to be provided at American workplaces. It also calls for an end to subminimum wage provisions, where employers can pay disabled workers less than the federal minimum wage.By taking a page out of the Ford playbook - and increasingly the Bezos one - Biden could be giving the middle class a much-needed lift.<div type="image" title="henry ford" height="1471" width="1961" msid="82481195" hostid="261"></div><h2>Ford and Bezos raised wages to increase productivity</h2>America's industrial middle class ascended during the last century with the help of a little mass production. In 1914, Ford Motor Co. founder Henry Ford offered factory workers $5 a day for eight hours of work. Equivalent to $120 in 2014 dollars, it was more than double the minimum wage at the time, <a href="https://www.npr.org/2014/01/27/267145552/the-middle-class-took-off-100-years-ago-thanks-to-henry-ford">NPR's Sarah Cwiek reported</a>. Bob Kreipke, corporate historian for Ford Motor Co., told Cwiek that, in raising the minimum wage, Ford intended to stabilize his workforce after the advent of conveyor belts helped standardize production. The move "raised the bar all over the world," he said.Turnover waned as productivity accelerated, causing Ford's profits to double in less than two years. Ford later called the wage hike his "best cost-cutting move." It was the beginning of what we know today as efficiency wages - paying above the market rate. This makes a job more desirable, creating a larger talent pool, thereby making employees more replaceable. It incentivizes employees to slack less, <a href="https://hbr.org/2018/10/how-amazons-higher-wages-could-increase-productivity">per the Harvard Business Review</a>.Over a century later, another leader implemented a similar strategy. In early 2021, in fact, in the beginning of the Biden era, <keyword id="18635" type="CITY" weightage="60" keywordseo="Amazon">Amazon</keyword> CEO Jeff Bezos announced a <a href="https://www.businessinsider.com/amazon-raise-pay-3-an-hour-for-500000-workers-2021-4">pay bump of up to $3 an hour</a> for 500,000 workers as the company continues to hire. This comes after Amazon set its minimum wage at $15 in 2018, higher than its biggest competitor, <a href="https://www.businessinsider.com/amazon-slams-walmart-for-not-paying-workers-15-per-hour-2020-12">Walmart</a>. Also this year, the company advocated for a $15 federal minimum wage, a key policy item for Biden. The federal minimum wage <a href="https://www.businessinsider.com/optimum-currency-theory-explains-why-minimum-wage-stuck-2021-4https://www.businessinsider.com/optimum-currency-theory-explains-why-minimum-wage-stuck-2021-4">remains stuck</a> at $7.25 an hour.Bezos, who is serving out his final year as CEO, said he aimed for Amazon to become "Earth's best employer and Earth's safest place to work" in his final letter to shareholders. He said he decided to "raise wages" because he wanted to lead competitors to higher average hourly wage among other employers in the same labor market."We're not done leading," the founder added. "We'll do that by continuing to lead on wages, on benefits, on upskilling opportunities, and in other ways that we will figure out over time."Based on the concept of efficiency wages, HBR thinks it's possible Amazon's wage hike could be just as successful as Ford's. It could benefit Amazon by inducing better employee retention and productivity gains. <a href="https://www.hbs.edu/faculty/Pages/item.aspx?num=52552">Research has found</a> that an unexpected pay raise motivates employees to work harder out of a sense of reciprocity.<div type="image" title="Jeff Bezos" height="1666" width="2222" msid="82481197" hostid="261"></div><h2>Biden's plans could change the economy </h2>Now, Ford and Bezos' plans weren't foolproof. Company wage hikes don't necessarily reflect a strong workforce. Productivity remains a controversial topic at Amazon, where drivers recently spoke up about demanding delivery times that they said incentivize them to <a href="https://www.businessinsider.com/amazon-drivers-say-peeing-in-bottles-common-despite-company-denials-2021-3">pee in bottles and leak period blood into their pants</a> rather than take a break. And while the company's <a href="https://markets.businessinsider.com/news/stocks/amazon-earnings-wall-street-reacts-blockbuster-report-analysts-stock-price-2020-7-1029456482">revenue exploded</a> during the COVID-19 pandemic, workers said they were <a href="https://www.businessinsider.com/amazon-workers-lawsuit-wash-hands-penalty-coronavirus-2020-7">reprimanded for taking breaks</a> to wash their hands and sanitize stations.And, while Ford's wage hike may have boosted a more prosperous middle class, the economy has since changed. University of California, Berkeley, labor economist Harley Shaiken, <a href="https://www.npr.org/2014/01/27/267145552/the-middle-class-took-off-100-years-ago-thanks-to-henry-ford">told NPR</a> that employers now view the lowest wage as the most competitive and that technology has taken precedence over stabilization. What worked for boosting the middle class economy then may not work now. An infrastructure plan that holds the promise of pay increases and new jobs for some workers could help boost the middle class even if the federal minimum wage stays where it is, as wealth inequality in the US continues to widen.Granted, some of these gains could be offset by a rise in inflation. While the economy can't yet be definitely said to be overheating, <a href="https://www.businessinsider.com/inflation-stimulus-debate-economic-growth-spending-federal-reserve-larry-summers-2021-3">as some critics charge</a>, it is seeing a <a href="https://www.businessinsider.com/everything-that-could-get-more-expensive-in-2021-inflation-2021-3">supply shortage</a> in everything from cars to hot tubs to chicken due to pent-up demand unleashed with reopening. Both Biden's administration and the Federal Reserve has insisted these shortages - and resulting price rises - are "transitory," and reflect a bottleneck effect as the economy kicks back into gear. In other words, the economy should work out these kinks soon. Then again, it might not.While it may still be too early to measure the success of the wage hike at Amazon and we may no longer be living in Ford's economy, the research is clear: increasing pay motivates employees. Seeing aspects of their strategies reappear in Biden's infrastructure plan could be a gamechanger for the economy.

Biden's spending plans could lift wages from the bottom up. It's a page out of Jeff Bezos' playbook - or Henry Ford's.

Check out the more than 50 pitch decks fintechs used to raise millions in funding from top investors

<div style="padding: 15px; border: 1px solid #999999; margin-bottom: 10px; font-size: 15px!important; line-height: 25px; overflow: auto; vertical-align: middle;"></div></div></div>The market went on a wild ride last week, ending with a big <a href="http://www.businessinsider.com/closing-bell-aug-8-2014-2014-8">185-point rally in the Dow</a> that put the major indexes modestly in the green for the week.
But thanks to elevated geopolitical risks, traders have got that risk-off feeling.
"Risk aversion rules," <a href="http://www.businessinsider.com/thin-economic-calendar-puts-geopolitics-in-focus-2014-8">Societe Generale's Kit Juckes said</a>. "The Ukraine conflict shows no sign of being resolved (rather, there's far too high a chance of escalation for comfort). [T]he U.S. has approved limited airstrikes in Northern Iraq. The conflict on Gaza, too, is in danger of re-escalation. Investors have plenty of reasons to take risk off the table and are doing so across the board."
The safe-haven asset classes have been popular. The Japanese yen has been <a href="http://www.businessinsider.com/japans-nikkei-drops-2014-8">strengthening against the world's major currencies</a>; German bonds saw <a href="http://www.businessinsider.com/german-negative-yield-2014-8">yields on the two-year security go negative</a>; and gold rallied to a <a href="http://www.bloomberg.com/news/2014-08-08/gold-set-to-halt-longest-weekly-slump-since-september-on-ukraine.html">three-week high on Friday</a>.
Treasury bonds have been staging an impressive rally with the <a href="http://www.businessinsider.com/safe-haven-assets-surging-2014-8">yield on the 10-year note</a> sliding to a 14-month low of 2.37%.
Here's your Monday Scouting Report:
Top Stories
<ul>
<li>Yield: "It's really hard for me to identify why rates should go higher," said Jeffrey Gundlach of DoubleLine Funds. In a <a href="http://www.businessinsider.com/jeffrey-gundlach-on-rates-2014-8">phone call with Business Insider on Friday</a>, Gundlach reiterated his expectation for the 10-year yield to trade between 2.2% and 2.8%, with the risk that it goes below 2.2%. Gundlach said that we could see Treasury yields rise if European yields were to rally. However, he reminded us that the European economy continues to be in much worse shape.</li>
<li>Jackson Hole Will Matter This Year: It was at <a href="http://www.federalreserve.gov/newsevents/speech/bernanke20100827a.htm">the 2010 Economic Policy Symposium in Jackson Hole</a> where then-Fed Chairman Ben Bernanke prepared the world for QE2, a second round of stimulative bond purchases. While the subsequent conferences have been interesting, none have been hyped up quite like the one coming up later this month. "We expect the Jackson Hole summit (21-23 August) to become the focus for markets seeking fresh signals from central bankers," said Barclays Christian Keller. "We eagerly await the upcoming Jackson Hole Conference," said Morgan Stanley's Vincent Reinhart. "Her remarks will provide an important update on the dashboard of labor market indicators which she is monitoring; and the financial markets will pay particular attention to her comments pertaining to gauges which continue to show 'significant underutilization of labor resources' as noted in the last FOMC statement," said Deutsche Bank's Carl Riccadonna. "Some of these measures include part-time workers for economic reasons, quit rates in the JOLTS data, the duration of unemployment, the U-6 unemployment rate and still-low labor force participation."</li>
</ul>
Economic Calendar 
<ul>
<li>JOLTS Job Openings (Tues): Economists estimate the the BLS's Job Openings and Labor Turnover Survey will reveal there were 4.55 million job openings in June, down from 4.635 million in May. "JOLTS has garnered more attention lately as Fed Chair Yellen often cites the survey when assessing the state of the labor market," noted Credit Suisse economists. "In May, JOLTS job openings continued to strengthen, rising to 4.6M and job vacancies per unemployed worker increased to 0.47, the highest level since May 2008. The ratio of vacancies to unemployed workers has risen much faster than its post-crisis trend for two months in a row, providing further confirmation that the US labor market has indeed shifted to a period of stronger growth. However, the rates of hiring and quitting were unchanged and remain well below pre-crisis levels."</li>
<li>Monthly Budget Statement (Tues): Economists expect the Treasury Department to report a deficit of $96.0 billion. Here's Morgan Stanley's Ted Wieseman: "We estimate the federal government ran a $92 billion budget deficit in July, down from $98 billion a year earlier on a 3.2% rise in receipts and 0.4% increase in outlays. Flat withheld income and payroll taxes slowed tax revenue growth, while one-off payments lowered miscellaneous outlays versus higher healthcare spending. For fiscal year 2014 ending in September we see the deficit on pace to narrow to $500 billion, or 2.9% of GDP, from $680 billion, 4.1% of GDP, in 2013 on 6.2% growth in receipts and 5.4% growth in outlays."</li>
<li>Retail Sales (Wed): Economists estimate sales climbed by 0.2% in July, or 0.4% excluding autos and gas. "Early indications point to solid upside in retail sales in July," said Morgan Stanley's Wieseman. "Unit auto sales fell to a 16.4 million unit annual rate in July from an eight-year high of 16.8 million in June, but industry reports indicated that the pullback reflected lower fleet sales, while retail sales rose. Meanwhile, our AlphaWise team's data pointed to a solid rise in ex autos and gas sales, and our retail analysts in equity research saw somewhat muted mall sales trends in July but indications of early back-to-school sales being off to a good start. So we look for a solid further 0.4% gain in the core "retail control" category on top of a 0.5% rise in June."</li>
<li>Initial Jobless Claims (Thurs): Economists estimate weekly initial claims ticked up to 295,000 from 289,000 a week ago. Here's Citi's Peter D'Antonio: "Note 1: After seven years, first filings have now sunk to the range that prevailed before the crisis. US growth exceeding 3 percent going forward likely will keep claims below 300,000, except for shocks and periods known for elevated filings such as at yearend. Note 2: Beneficiaries and the insured rate also have reverted to their respective pre- crisis ranges. While the BLS' civilian unemployment rate remains high and is expected to fall by another 1/2 percentage point over the next year and a half, we posit that there is limited scope for further decline in the insured rate. The insured rate is now capturing the short-term unemployed (26 weeks or less) who are finding jobs more easily. Indeed, the BLS' short-term unemployment rate at 4% has returned to its pre-crisis range. But the civilian rate includes the short- as well as the long-term unemployed - the latter of which has further to fall."</li>
<li>Empire Manufacturing (Fri): Economists estimate this regional manufacturing index fell to 20.0 in August from 25.6 in July. "The current level for this index looks to be unsustainably high: the last time it breached 25.0, Empire fell below 20 the following month," said Bank of America Merrill Lynch economists. "That said, we believe the manufacturing sector in New York State will likely continue to grow at a robust pace, as 20.0 still remains higher than levels we've seen over the last several years."</li>
<li>Producer Price Index (Fri): Economists estimate PPI Climbed by just 0.1% month-over-month or 1.7% year-over-year. Excluding food and energy, core PPI is estimated to have climbed by 0.2% or 1.6%, respectively. "The higher producer prices combined with rising unit labor costs will likely play a role in moderating corporate profits as the year progresses," said Wells Fargo's John Silvia. "The magnitude of the impact on profits will depend on the ability for producers to pass along the higher costs to consumers."</li>
<li>Industrial Production (Fri): Economists estimate industrial production increased by 0.3% in July with capacity utilization increasing to 79.2%. "Based on the BLS's accounting of aggregate hours worked, we expect manufacturing production (excluding vehicles) to decline in July, while mining output should remain unchanged," said Nomura economists. "We expect vehicle production to increase, especially given reports that there were fewer auto factory shutdowns for retooling this July. Lastly, based on weekly utility output data, we expect utilities production to decline due to less cooling demand (July was cooler than usual). Taking these factors into consideration, we expect industrial production to remain unchanged in July."</li>
<li>University of Michicgan Confidence (Fri): Economists estimate this index of sentiment climbed to 82.5 in August from 81.8 in July. "This would largely reflect equity markets, which have moved lower as volatility has picked up," said Barclays economists.</li>
</ul>
Market Commentary
Earnings season is wrapping up. "Of these 446 companies [that have reported Q2 results], 73% have reported actual EPS above the mean EPS estimate and 27% have reported actual EPS below the mean EPS estimate," said FactSet's John Butters. "The percentage of companies reporting EPS above the mean EPS estimate is above both the 1-year (72%) average and the 4-year (72%) average."
"Inflation remains a key concern for management," said Goldman Sachs' David Kostin, whose team has thumb through the reports and listened to the conference calls. "Companies noted the potential long- term impact of rising costs on margins despite hedges that reduce the near-term impact on profits. Firms in the consumer sectors have already experienced inflationary pressures due to rising input costs. Conflicting opinions exist as to whether boosting prices on the consumer will help mitigate the effect of rising costs."
For more insight about the middle market, visit <a href="https://urldefense.proofpoint.com/v1/url?u=http://mid-marketpulse.com&amp;k=S62Tl7vLGjW6AAK5ZFwEoQ%3D%3D%0A&amp;r=%2B2sEypbBAnV2mc5PLhBR08ZBMT%2BquZZGjxd0T7NNaP4%3D%0A&amp;m=UtLLChRIkxZLioNs9a5IxKFS7RONkU%2FjCuvoQ68P2Hw%3D%0A&amp;s=28acf971eb6ce00a636a9e28c206665a00dc8a6b849c5fbdd6236e929e9008ce" target="_blank">mid-marketpulse.com</a>.

You Searched For "Budget 2014 Signals Achche Din For Middle Class" and got 8 results

Biden's spending plans could lift wages from the bottom up. It's a page out of Jeff Bezos' playbook - or Henry Ford's.

Hillary Hoffower,Allana Akhtar

Check out the more than 50 pitch decks fintechs used to raise millions in funding from top investors

Shannen Balogh,Anita Ramaswam…

Here's Your Complete Preview Of This Week's Big Economic Events

Sam Ro

Here's What Happens Now That Republicans Control The Government

Brett LoGiurato

China Will Need A Series Of Miracles To Sustain Growth

John Mauldin

Full transcript of PM Narendra Modi's TV interview

BI India Bureau

Economic Activity Expands In All Fed Districts

Myles Udland

BEIGE BOOK: The Economy Is Still Growing

Myles Udland

Popular Keywords

Buying Guides