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The productivity gap is really an economics understanding gap. The whole idea is that when productivity goes up, prices go down! To suggest wages should go up
by randyrand 10y ago
The productivity gap is really an economics understanding gap.
The whole idea is that when productivity goes up, prices go down! To suggest wages should go up when productivity goes up is a complete misunderstanding of economics. It's stupid. You only need one! Prices going down is how the free market adjust for productivity.
If they wanted to make a fair comparison, chart a graph between productivity and the cost to buy a basket of goods in real money. You'll find wages have gone up! Roughly the rate of GDP growth per year! Shocking!!! /s
- dandare 10y agoGood point. Also, wages are not disposable income - the government redistributes more wealth than it used to. The number on your payslip may not be bigger but you can afford more food and health care. Any graph should take this into consideration.