5 ms·

Every single economic and worker issue can be explained with a single graph. https://files.epi.org/2013/ib388-figurea.jpg https://files.epi.org/2013/ib388-figu

Every single economic and worker issue can be explained with a single graph. https://files.epi.org/2013/ib388-figurea.jpg https://files.epi.org/2013/ib388-figurea.jpg Or if you really like charts https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/

lm28469 5y ago
While valid for a lot of industries, I'm not sure the productivity of driving a truck from A to B doubled since the 70s
- ouid 5y ago
  the opportunity cost still would.
  - kragen 5y ago
    Hi, I took the time to try to answer your question in https://news.ycombinator.com/item?id=28893728 https://news.ycombinator.com/item?id=28893728; would you be willing to clarify?
- joebob42 5y ago
  Probably at least a little: logistics has improved substantially since then. Also the value of the stuff in the truck is up, I'm not sure how that plays in.
gruez 5y ago
So according to you, the 2008 recession was caused by... gap between productivity and hourly compensation? also, comparing productivity to hourly compensation is a bad comparison because it entirely omits other forms of compensation (stocks, healthcare). if i try to compare total compensation to productivty using FRED, I get: https://i.imgur.com/ohabUFu.png https://i.imgur.com/ohabUFu.png, which seems to say the opposite? Total compensation seems to have outpaced productivity growth, at least starting from 2000.
- omreaderhn 5y ago
  You should actually read through that website. The gap between productivity and wages is only one of the charts on there. The thesis posits that both the 2008 recession and the productivity-wage gap is a consequence of the monetary regime that began in the early 1970s.
  - fighterpilot 5y ago
    What do economists think about this explanation?
  - gruez 5y ago
    >The thesis posits ... what thesis? The first link is a chart, and the second link is a collection of charts with a bunch of arrows, and a quote at the end. Neither be plausibly called a thesis, unless you're already to primed to believe it.
- citizenpaul 5y ago
  Yes. People getting paid fairly don't need ridiculously unreasonable loan conditions to buy a house. The fact that you are bringing up stocks as compensation says a great deal. Cool so I can have healthcare while I starve naked on the street cause I can't pay for food,clothing or housing with my insurance card. FRED... oh man. You mean the private business that was created specificity to rob every person in the united states says nothing is wrong. In fact it is great? Cool.... Read https://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/dp/091298645X https://www.amazon.com/Creature-Jekyll-Island-Federal-Reserv... If you really want to know what is going on.
  - gruez 5y ago
    > Yes. People getting paid fairly don't need ridiculously unreasonable loan conditions to buy a house. certainly not due to other factors, say NIMBYism or more urbanization (more people crammed into the same piece of land) >The fact that you are bringing up stocks as compensation says a great deal. Well? What does it say? >Cool so I can have healthcare while I starve naked on the street cause I can't pay for food,clothing or housing with my insurance card. I'm not sure what your point here is. Are you upset that employers are compensating employees on a non-cash basis? >FRED... oh man. You mean the private business that was created specificity to rob every person in the united states says nothing is wrong. In fact it is great? Cool.... if you look more carefully you'll see the actual data is sourced from the BLS.
ouid 5y ago
the "bitcoin will save us" at the bottom...
andymockli 5y ago
Spoiler: US Government spent more money than they had in gold reserves culminating in the breaking of the Bretton Woods agreement with European nations. The USD from 1973 became a fully fiat currency. So yes, if it deals with the US economy after 1970's, as the graphs indicate, it's inseparable from USD inflation most likely caused by government spending. https://en.wikipedia.org/wiki/Nixon_shock https://en.wikipedia.org/wiki/Nixon_shock
deleted 5y ago
[deleted]
fighterpilot 5y ago
What did it look like before 1950?

lm28469 5y ago

While valid for a lot of industries, I'm not sure the productivity of driving a truck from A to B doubled since the 70s

ouid 5y ago
the opportunity cost still would.
- kragen 5y ago
  Hi, I took the time to try to answer your question in https://news.ycombinator.com/item?id=28893728 https://news.ycombinator.com/item?id=28893728; would you be willing to clarify?
joebob42 5y ago
Probably at least a little: logistics has improved substantially since then. Also the value of the stuff in the truck is up, I'm not sure how that plays in.

gruez 5y ago

So according to you, the 2008 recession was caused by... gap between productivity and hourly compensation? also, comparing productivity to hourly compensation is a bad comparison because it entirely omits other forms of compensation (stocks, healthcare). if i try to compare total compensation to productivty using FRED, I get: https://i.imgur.com/ohabUFu.png https://i.imgur.com/ohabUFu.png, which seems to say the opposite? Total compensation seems to have outpaced productivity growth, at least starting from 2000.

omreaderhn 5y ago
You should actually read through that website. The gap between productivity and wages is only one of the charts on there. The thesis posits that both the 2008 recession and the productivity-wage gap is a consequence of the monetary regime that began in the early 1970s.
- fighterpilot 5y ago
  What do economists think about this explanation?
- gruez 5y ago
  >The thesis posits ... what thesis? The first link is a chart, and the second link is a collection of charts with a bunch of arrows, and a quote at the end. Neither be plausibly called a thesis, unless you're already to primed to believe it.
citizenpaul 5y ago
Yes. People getting paid fairly don't need ridiculously unreasonable loan conditions to buy a house. The fact that you are bringing up stocks as compensation says a great deal. Cool so I can have healthcare while I starve naked on the street cause I can't pay for food,clothing or housing with my insurance card. FRED... oh man. You mean the private business that was created specificity to rob every person in the united states says nothing is wrong. In fact it is great? Cool.... Read https://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/dp/091298645X https://www.amazon.com/Creature-Jekyll-Island-Federal-Reserv... If you really want to know what is going on.
- gruez 5y ago
  > Yes. People getting paid fairly don't need ridiculously unreasonable loan conditions to buy a house. certainly not due to other factors, say NIMBYism or more urbanization (more people crammed into the same piece of land) >The fact that you are bringing up stocks as compensation says a great deal. Well? What does it say? >Cool so I can have healthcare while I starve naked on the street cause I can't pay for food,clothing or housing with my insurance card. I'm not sure what your point here is. Are you upset that employers are compensating employees on a non-cash basis? >FRED... oh man. You mean the private business that was created specificity to rob every person in the united states says nothing is wrong. In fact it is great? Cool.... if you look more carefully you'll see the actual data is sourced from the BLS.

ouid 5y ago

the "bitcoin will save us" at the bottom...

andymockli 5y ago

Spoiler: US Government spent more money than they had in gold reserves culminating in the breaking of the Bretton Woods agreement with European nations. The USD from 1973 became a fully fiat currency. So yes, if it deals with the US economy after 1970's, as the graphs indicate, it's inseparable from USD inflation most likely caused by government spending. https://en.wikipedia.org/wiki/Nixon_shock https://en.wikipedia.org/wiki/Nixon_shock

deleted 5y ago

[deleted]

fighterpilot 5y ago

What did it look like before 1950?