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> industrial capacity has been rising that is what "more capital equipment exists" means. Its utilization of 87%+ in the late 1960s to below 77% in 2011 is th

by obrero 11y ago

> industrial capacity has been rising that is what "more capital equipment exists" means. Its utilization of 87%+ in the late 1960s to below 77% in 2011 is the problem. > inflation-adjusted hourly compensation has never been higher The chart you refer to is very obviously NOT inflation adjusted. Adjusted for inflation it was higher in the early 1970s - it has fallen over 45 years. > making up random facts I am citing data correctly. You are pointing to charts showing hourly wages are 10 times what they were 50 years ago and saying they are not adjusted for inflation.

yummyfajitas 11y ago
You are right, I copied the wrong graph for compensation. Here is real compensation per hour: https://research.stlouisfed.org/fred2/series/COMPRNFB https://research.stlouisfed.org/fred2/series/COMPRNFB My mistake, thanks for the correction. It's still going up. The claims that wages have not risen are based entirely on cherry-picked data, carefully choosing endpoints, and ignoring non-wage compensation as well as the fact that CPI wildly overstates inflation in the long run [1]. Also, the graph I provided is industrial production, which is going up. You might be right that capacity grew faster than production (cite?), but production has also gone up. [1] See, e.g. Boskin commission, the lack of hedonic adjustments in healthcare, and the variable basket of goods used in chained CPI which prevents it from actually being a long term inflation measure. (I.e., inflation from 1970->2015 should only include goods invented in 1970, but chained CPI adds new goods yearly in order to accurately measure 1983->1984 inflation.)
maxerickson 11y ago
The Fed does also claim a rise in real compensation: https://research.stlouisfed.org/fred2/series/COMPRNFB https://research.stlouisfed.org/fred2/series/COMPRNFB (note the additional R before complaining it is the same link) Of course it is not as dramatic as the rise in compensation.

by obrero 11y ago

yummyfajitas 11y ago

You are right, I copied the wrong graph for compensation. Here is real compensation per hour: https://research.stlouisfed.org/fred2/series/COMPRNFB https://research.stlouisfed.org/fred2/series/COMPRNFB My mistake, thanks for the correction. It's still going up. The claims that wages have not risen are based entirely on cherry-picked data, carefully choosing endpoints, and ignoring non-wage compensation as well as the fact that CPI wildly overstates inflation in the long run [1]. Also, the graph I provided is industrial production, which is going up. You might be right that capacity grew faster than production (cite?), but production has also gone up. [1] See, e.g. Boskin commission, the lack of hedonic adjustments in healthcare, and the variable basket of goods used in chained CPI which prevents it from actually being a long term inflation measure. (I.e., inflation from 1970->2015 should only include goods invented in 1970, but chained CPI adds new goods yearly in order to accurately measure 1983->1984 inflation.)

maxerickson 11y ago

The Fed does also claim a rise in real compensation: https://research.stlouisfed.org/fred2/series/COMPRNFB https://research.stlouisfed.org/fred2/series/COMPRNFB (note the additional R before complaining it is the same link) Of course it is not as dramatic as the rise in compensation.