Increasing wages boost morale, economy

by Jerome a Paris Wed Jan 17th, 2007 at 05:40:25 AM EST

... or the headline you won't read. And yet...

An improvement in Germany’s labour market and the resulting increase in household incomes helped support the expectations indicator this month, the ZEW said.

Companies were flourishing, suggesting investment demand would remain dynamic, while the strong competitiveness of German companies should offer further support to exports.

German growth was low when wage growth was nil, and is increasing now that finally wages are going up. Time to say it: Wage increases are needed for growth.