"The economy’s failure to ensure that typical workers benefit from growth is evident in the widening gap between productivity and median wages. In the first few decades after World War II, productivity and median wages grew in tandem. But between 1979 and 2011, productivity—the ability to produce more goods and services per hour worked—grew 69.2 percent, while median hourly compensation (wages and benefits) grew just 7.0 percent." -- The State of Working America. 12th Edition.Between 1979 and 2011, new wealth generated by increases in productivity was overwhelmingly funneled to the top richest people in the country. This seems to have been no accident. Rather, the main cause of the wealth inequality appears to be government policies.
Wealth Inequality and Productivity
Posted on Friday, January 25, 2013