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This is the opposite of what's happening in America today. Wages have not elevated in decades, there is an odd inflation that is only needs specific (food, hous

This is the opposite of what's happening in America today. Wages have not elevated in decades, there is an odd inflation that is only needs specific (food, housing, education), even the manufacturing that comes back to the country is usually automated so there are very little jobs brought by it.

deleted 6y ago
[deleted]
Fjolsvith 6y ago
The median income for 2018 was up for the second year in a row. 2017 marked the first year since 2007 that median income in the U.S. rose. [1] 1. https://www.investopedia.com/personal-finance/what-average-income-us/ https://www.investopedia.com/personal-finance/what-average-i...
- digitaltrees 6y ago
  Two problems with this analysis and data. 1. These gains aren’t enough to undo the decoupling of wages from productivity that has resulted in real wage stagnation. (See here https://www.epi.org/productivity-pay-gap/ https://www.epi.org/productivity-pay-gap/ ), 2. These wage increases haven’t exceeded inflation so actual household spending power has decreased in real terms. Basically consumers have less ability to spend because more profit is being captured. The problem is this profit capture (i.e. the spread between productivity and wages) is good for companies in the short term but damaging in the long term as the market shrinks due to decreased demand. After a thirty year trend of this dynamic America is reaching a brick wall where consumers will be tapped out and growth will stagnate.
  - Fjolsvith 6y ago
    The point is that the last two years is a change over the last 30.
    - digitaltrees 6y ago
      But it’s not though. There were wage increases in the 90s, mid 2000s and then the ones you site. Those relate to the business cycle and don’t undo the structural problems and trends that I highlight.
      - Fjolsvith 6y ago
        Well gosh. You don't undo 30 years overnight unless you have a magic wand.

deleted 6y ago

[deleted]

Fjolsvith 6y ago

The median income for 2018 was up for the second year in a row. 2017 marked the first year since 2007 that median income in the U.S. rose. [1] 1. https://www.investopedia.com/personal-finance/what-average-income-us/ https://www.investopedia.com/personal-finance/what-average-i...

digitaltrees 6y ago
Two problems with this analysis and data. 1. These gains aren’t enough to undo the decoupling of wages from productivity that has resulted in real wage stagnation. (See here https://www.epi.org/productivity-pay-gap/ https://www.epi.org/productivity-pay-gap/ ), 2. These wage increases haven’t exceeded inflation so actual household spending power has decreased in real terms. Basically consumers have less ability to spend because more profit is being captured. The problem is this profit capture (i.e. the spread between productivity and wages) is good for companies in the short term but damaging in the long term as the market shrinks due to decreased demand. After a thirty year trend of this dynamic America is reaching a brick wall where consumers will be tapped out and growth will stagnate.
- Fjolsvith 6y ago
  The point is that the last two years is a change over the last 30.
  - digitaltrees 6y ago
    But it’s not though. There were wage increases in the 90s, mid 2000s and then the ones you site. Those relate to the business cycle and don’t undo the structural problems and trends that I highlight.
    - Fjolsvith 6y ago
      Well gosh. You don't undo 30 years overnight unless you have a magic wand.