Andylusion
Platinum Member
"Productivity in the economy grew by 80.4 percent between 1973 and 2011 but the growth of real hourly compensation of the median worker grew by far less, just 10.7 percent….
"The pattern was very different from 1948 to 1973, when the hourly compensation of a typical worker grew in tandem with productivity.
"Reestablishing the link between productivity and pay of the typical worker is an essential component of any effort to provide shared prosperity and, in fact, may be necessary for obtaining robust growth without relying on asset bubbles and increased household debt."
40 Years of Economic Policy in One Chart CounterPunch Tells the Facts Names the Names
In the 1970s wages detached from productivity and the richest among us began using their newly acquired wealth to reduce taxes on capital, role back regulations, break unions, "and induce their shady Central Bank buddies to keep interest rates locked below the rate of inflation so they could cream hefty profits off gigantic asset bubbles."
Mission Accomplished?
If those producing are that damn good, perhaps they should start their own business.
A better question is why.
Why did wages and productivity diverge.
The left is real quick to blame "evil capitalists" and crap. The problem with that theory is, then why didn't it diverge much sooner? There have been "evil capitalists" run and profiting in this country, since before Washington crossed the Delaware. Why didn't wages and productivity diverge then?
Well it was because of replacing men with machines. Really? Because we've been doing that since the Cotton Gin in 1973, replaced the work of 50 men, with one Cotton Gin.
Well could it be the actually elimination of men, using computerized automation? Maybe.... perhaps. But there's little evidence of that. You might eliminate the need for a dozen low skilled workers, with automated systems, but you generally need several high-skilled high-paid workers to make the systems operate.
So here's my question....
Does the above graph showing wages and productive diverging... does that account for unemployment compensation? UI started in the 1970s. Does it account for the cost of regulations? OSHA started in the 1970s. Does it account for EPA costs? The EPA was started in the 1970s.
All of these regulations cost employers money, in order to follow them. Of course every dollar the employer is forced to spending meeting some arbitrary law, is one less dollar they can pay employees with.