Career Calling

October 4, 2015

Productivity and Wages

Filed under: Economics — claycerny @ 5:50 pm
Tags: , , , , , ,

 

Daily Kos’s Mark E. Anderson examines increased productivity and stagnant wages between 1948 and 2014. His article includes a very informative graph that shows how these two economic measures were almost aligned. Now productivity doubles wages. Where has the money gone? Anderson argues that work has gone overseas where labor is cheaper and profits have gone to executives and investors.   I agree, but would add one other big factor: automation. I was working with a client this weekend who works for a large technology manufacturer. His company will be able to shed hundreds of tech jobs once they move to cloud-based systems. Jobs can come back from China. Once they are automated, they are gone forever.   Anderson makes a great point in concluding his article: What are the super rich and executives going to do when no one can afford to buy their products?

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