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This is a myth, and if you look into the statistics of the people pushing this Big Lie, you'll find that they cheat and use different inflation metrics for prod

by ikeboy 5y ago

This is a myth, and if you look into the statistics of the people pushing this Big Lie, you'll find that they cheat and use different inflation metrics for productivity and for compensation.

jason0597 5y ago
Can you show us these Big Lie statistics? Can you post a link or two for further reading?
- extra88 5y ago
  They probably won't deliver but I will. Here's a top hit "The Productivity–Pay Gap" [0], what I was talking about, from the Economic Policy Institute, a pro-worker, left-leaning think tank [1]. The top google hit for the "myth" is "Debunking a Myth in 1 Chart: Wage & Productivity Growth" [2] from the American Action Forum, a conservative think tank affiliated with a conservative, Republican advocacy group [3]. Basically it claims the original report compared data that aren't comparable. There's also "Why the gap between worker pay and productivity might be a myth" [4] from the American Enterprise Institute, a conservative think tank [5]. I didn't read them closely but part of the methodology in the AEI article used salary and benefits instead of just salary to draw a compensation line closer to productivity. Given that health care is such a huge part of the cost of those benefits, maybe the claim should be that company shareholders are sharing the wealth with workers but that health care costs are so out of control it's eating up all the workers' gains. EPI response to criticisms, "Understanding the Historic Divergence Between Productivity and a Typical Worker’s Pay" [6]. [0] https://www.epi.org/productivity-pay-gap/ https://www.epi.org/productivity-pay-gap/ [1] https://en.wikipedia.org/wiki/Economic_Policy_Institute https://en.wikipedia.org/wiki/Economic_Policy_Institute [2] https://www.americanactionforum.org/insight/debunking-a-myth-in-1-chart-wage-productivity-growth/ https://www.americanactionforum.org/insight/debunking-a-myth... [3] https://en.wikipedia.org/wiki/American_Action_Network https://en.wikipedia.org/wiki/American_Action_Network [4] https://www.aei.org/economics/political-economy/the-decline-of-unions-didnt-cause-the-growing-gap-between-pay-and-productivity-which-may-not-be-happening-either-study/ https://www.aei.org/economics/political-economy/the-decline-... [5] https://en.wikipedia.org/wiki/American_Enterprise_Institute https://en.wikipedia.org/wiki/American_Enterprise_Institute [6] https://www.epi.org/publication/understanding-the-historic-divergence-between-productivity-and-a-typical-workers-pay-why-it-matters-and-why-its-real/ https://www.epi.org/publication/understanding-the-historic-d...
- ikeboy 5y ago
  https://www.reddit.com/r/badeconomics/comments/6rtoh4/productivity_pay_gap_in_epi_we_trust/ https://www.reddit.com/r/badeconomics/comments/6rtoh4/produc... Sure, a bunch of sources linked here. https://piie.com/blogs/realtime-economic-issues-watch/growing-gap-between-real-wages-and-labor-productivity https://piie.com/blogs/realtime-economic-issues-watch/growin... this is linked there and goes through how the data looks if you correct for all the issues.

by ikeboy 5y ago

This is a myth, and if you look into the statistics of the people pushing this Big Lie, you'll find that they cheat and use different inflation metrics for productivity and for compensation.

jason0597 5y ago

Can you show us these Big Lie statistics? Can you post a link or two for further reading?

extra88 5y ago
They probably won't deliver but I will. Here's a top hit "The Productivity–Pay Gap" [0], what I was talking about, from the Economic Policy Institute, a pro-worker, left-leaning think tank [1]. The top google hit for the "myth" is "Debunking a Myth in 1 Chart: Wage & Productivity Growth" [2] from the American Action Forum, a conservative think tank affiliated with a conservative, Republican advocacy group [3]. Basically it claims the original report compared data that aren't comparable. There's also "Why the gap between worker pay and productivity might be a myth" [4] from the American Enterprise Institute, a conservative think tank [5]. I didn't read them closely but part of the methodology in the AEI article used salary and benefits instead of just salary to draw a compensation line closer to productivity. Given that health care is such a huge part of the cost of those benefits, maybe the claim should be that company shareholders are sharing the wealth with workers but that health care costs are so out of control it's eating up all the workers' gains. EPI response to criticisms, "Understanding the Historic Divergence Between Productivity and a Typical Worker’s Pay" [6]. [0] https://www.epi.org/productivity-pay-gap/ https://www.epi.org/productivity-pay-gap/ [1] https://en.wikipedia.org/wiki/Economic_Policy_Institute https://en.wikipedia.org/wiki/Economic_Policy_Institute [2] https://www.americanactionforum.org/insight/debunking-a-myth-in-1-chart-wage-productivity-growth/ https://www.americanactionforum.org/insight/debunking-a-myth... [3] https://en.wikipedia.org/wiki/American_Action_Network https://en.wikipedia.org/wiki/American_Action_Network [4] https://www.aei.org/economics/political-economy/the-decline-of-unions-didnt-cause-the-growing-gap-between-pay-and-productivity-which-may-not-be-happening-either-study/ https://www.aei.org/economics/political-economy/the-decline-... [5] https://en.wikipedia.org/wiki/American_Enterprise_Institute https://en.wikipedia.org/wiki/American_Enterprise_Institute [6] https://www.epi.org/publication/understanding-the-historic-divergence-between-productivity-and-a-typical-workers-pay-why-it-matters-and-why-its-real/ https://www.epi.org/publication/understanding-the-historic-d...
ikeboy 5y ago
https://www.reddit.com/r/badeconomics/comments/6rtoh4/productivity_pay_gap_in_epi_we_trust/ https://www.reddit.com/r/badeconomics/comments/6rtoh4/produc... Sure, a bunch of sources linked here. https://piie.com/blogs/realtime-economic-issues-watch/growing-gap-between-real-wages-and-labor-productivity https://piie.com/blogs/realtime-economic-issues-watch/growin... this is linked there and goes through how the data looks if you correct for all the issues.