Thursday, September 15, 2016

Wages and Productivity

Some days won't end ever
And some days pass on by
I'll be working here forever
At least until I die
--Huey Lewis & The News

As workers becomes more productive, they earn higher wages. It works in reverse as well. Lower productivities lead to wage declines.

It should come as no surprise, then, that reports indicate broadly declining wages. Productivity has been falling, which by definition means that fewer economic resources are being generated as income.

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