47% Saw Real Wages Decline Due To Inflation: Richardson

Watch on YouTube ↗  |  August 28, 2026 at 20:47  |  7:50  |  Bloomberg Markets
Speakers
Nela Richardson — Chief Economist, ADP
Scarlet Fu — Anchor, Bloomberg Television

Summary

Nela Richardson discusses how sticky inflation is squeezing real wages, with ADP research showing 47% of Americans saw real wage declines over four years. She highlights rising healthcare and pharmaceutical costs, value-seeking consumer behavior, stress in fast food franchises versus a better fast casual segment, and strong wage gains for construction and contract workers. The conversation closes with personal investing guidance favoring dollar-cost averaging into broad equity and bond ETFs plus selective startup bets.

  • ADP research: 47% of Americans saw real wage declines over the last four years due to inflation.
  • Healthcare costs and revolutionary drug prices are climbing, supporting pharmaceutical pricing power.
  • Consumers feel lousy and seek value, benefiting Walmart and McDonald's.
  • Fast food franchise bankruptcies are rising; fast casual segment doing relatively better.
  • Job-switching pay premium has narrowed to about 2%, but construction workers see roughly 14% gains.
  • Contractors are indexing multi-year contracts to inflation.
  • Personal finance view: dollar-cost average into broad equity/bond ETFs; time in market over timing.
  • Selective startup bets may suit younger investors.
Ideas
Nela Richardson Chief Economist, ADP 1:08
Pharma pricing power remains strong
Nela Richardson says no one is escaping the elephant in the market: healthcare costs are climbing. Revolutionary drugs such as GLP-1 obesity treatments and cancer therapies come with high price tags, and pharmaceuticals have a 7-8 year window to recoup costs, so employers and employees must pay up for next-level care.
XLV MED
Scarlet Fu Anchor, Bloomberg Television 1:45
Value-seeking consumers benefit Walmart and McDonald's
Scarlet Fu states that consumers are feeling lousy about affordability and are seeking value, and Walmart and McDonald's have benefited from that trade-down and value-seeking consumer behavior.
WMT MCD LOW
Nela Richardson Chief Economist, ADP 2:07
Fast casual restaurants outperform fast food
Nela Richardson says the restaurant industry is hard and not every franchise succeeds, but the fast casual segment appears to be doing better than fast food when she talks to restaurant owners.
Fast casual restaurants LOW
Nela Richardson Chief Economist, ADP 6:53
Dollar-cost average into broad index ETFs
Nela Richardson says she combines set-and-forget investing with adjustments and is a big believer in dollar-cost averaging: put a fixed amount into the market every month through an ETF or another broad-based equity and bond portfolio, because it is time in the market, not timing the market, that builds wealth over time.
Broad equity and bond ETFs HIGH
Up Next
1:44
People Without Kids Now Utilize 529 Accounts
Bloomberg Markets · Aug 28
1:53
Employers Abandon Group Insurance as Price Hikes Bite
Bloomberg Markets · Aug 28
2:25
Americans Feel Guilty About Spending Money on Fun
Bloomberg Markets · Aug 28
3:54
Market Close: Stocks Lower, Inflation Warning Puts Rate Hikes in Focus • 8/28/26
CNBC · Aug 28
5:49
Threat of a Fed Rate Hike Is Changing the Leadership in Markets, Slimmon Says
Bloomberg Markets · Aug 28

This Bloomberg Markets video, published August 28, 2026, features Nela Richardson, Scarlet Fu discussing XLV, WMT, MCD, Fast casual restaurants, Broad equity and bond ETFs. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Nela Richardson, Scarlet Fu  · Tickers: XLV, WMT, MCD, Fast casual restaurants, Broad equity and bond ETFs