Understanding the Historic Divergence Between Productivity and a Typical Worker’s Pay: Why It...

Thought I would start a new thread on this article as I find it interesting. Increasing Productivity usually always means increasing GDP as it is part of the formula to increase GDP Growth. But does it always lead to increasing wage growth. Article says NO. Interesting some of the causes of the gap. Wages are being looked at independent of Total Compensation and Health Care costs have spiked since 1973. Another factor, trade polices (interestingly what Trump ran on). What we produce does not always balance against what we buy and currently I believe the trade imbalance US vs rest of the world is well above a half trillion dollars. Another interesting point is that it says the bulk of the wage growth took place 1995 to 2002 I believe when employment was tight. Interestingly enough Y2k is when the H1b VISA work program exploded in numbers allowing immigration to take some of the upward pressure off climbing wages. So it looks like there maybe a combination of factors leading to this wage gap but one thing is certain we need to close or narrow the gap to really restore the country back to wage growth and that means attacking the issue on multiple fronts.