Quote:
Originally Posted by kerowo
The only thing "forcing wages down" is Capitals desire to have more money. Revenue and profits have been steadily increasing while wages have been rather flat over the same period.
If you check gross wages including everything they aren't as flat as they appear.
Also typically the game is deflating the 2 indexes with 2 different inflation rates as to magnify the gap.
In a recent New York Times article, Eduardo Porter suggests that this gap has been growing for decades, claims it can be found in many other countries, and conjectures that automation that displaces middle-skilled jobs and "a harsh new global economy" may be responsible. But when the numbers are measured more comprehensively—when wages are broadly defined as compensation to include benefits, comparable price indexes are used to calculate differences in wage and output growth in constant dollars, and the output is measured net of depreciation—the puzzle of lagging wages disappears, at least for 1970–2000. While prior to 2000 blue-collar workers fared especially poorly, constant dollar labor compensation for all workers actually kept pace with output.
When appropriately measured, from 1970 to 2000, and perhaps to as late as 2008, the growth in overall worker compensation was precisely as rapid as the growth in average labor productivity would imply.
https://piie.com/blogs/realtime-econ...r-productivity