Thanks for that question.
The reason we closely watch the relationship between wages and productivity is that, if wages continue above productivity for a while, what eventually happens is that companies feel the pressure to build those higher wages into their prices, so you can get what we call a wage-price spiral. What we have seen more recently is.... We think most of the wage pickup we're seeing right now is really a catch-up. People have seen their cost of living go up and they are asking for higher wages. That's completely reasonable. However, as you point out, if wages run at a pace above productivity for a while, we worry.
What can be done? I don't know that we're necessarily discouraging business investment. Business investment that goes into increased productivity will always, over the long term, help the economy grow without producing inflation. Businesses can make capital investment, invest in their employees and provide training. There are other ways to increase productivity. You can remove trade barriers. There's more than one way to make the economy more productive than business investment.