Home > The Economics Profession, The Economy > 3 decades of growing productivity and stagnant wages (2 graphs)

3 decades of growing productivity and stagnant wages (2 graphs)

from David Ruccio

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“Some people think it’s a law that when productivity goes up, everybody benefits,” says Erik Brynjolfsson, an economics professor at the Massachusetts Institute of Technology. “There is no economic law that says technological progress has to benefit everybody or even most people. It’s possible that productivity can go up and the economic pie gets bigger, but the majority of people don’t share in that gain.”

Indeed, that possibility—of growing productivity and stagnant wages—has been the economic law for the past three decades.

  1. BFWR
    January 14, 2013 at 4:08 pm

    Think citizen’s dividend as the rational supplement and eventual almost replacement of the wage.

  2. Allen
    January 15, 2013 at 9:29 am

    Recently mentioning this sort of thing to a retired right wing politician (New Zealand), this former minister snorted derisively and said ” American workers get most of their pay from tips.”
    Your response?

  3. January 16, 2013 at 3:30 am

    How come that the trade deficit is increasing when wages stagnate and “productivity” is increasing? I would guess that would make US products more competitive on international markets but the trade deficit is telling a different story.

    • BFWR
      January 16, 2013 at 2:47 pm

      One needs to attend to the policies and hence the actual intentions of the economic/financial systems. There cannot be any doubt that this intention, which dominates the political system, is the will to power of the various economic and financial entities there, rather than the will to freedom for the individual. This is oppressive on its face and outrageous.

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