Is There a Mismatch Between Productivity and Workers’ Income? – American Thinker

Income inequality has grown over the last 30 years or more driven by three dynamics: rising inequality of labor income, rising inequality of capital income, and increasing share of income going to capital income rather than labor. As a consequence, examining market-based incomes one finds that the top 1 percent of households have secured a very large share of all of the gains in income—59.9 percent of the gains from 1979–2007, while the top 0.1 percent seized an even more disproportionate share: 36 percent. In comparison, 8.6 percent of income gains have gone to the bottom 90 percent.

Key Takeaways:

• One of the orthodox assumptions of both liberal and conservative economics is that a more productive economy leads to higher living standards.
• The Law of Diminishing Marginal Returns states that increasing additional units of a variable factor add less and less to total output, given constant quantities of other factors.
• You clearly can see that using a different calculator of inflation can make it seem that compensation doesn’t keep pace with productivity.

“One of the orthodox assumptions of both liberal and conservative economics is that a more productive economy leads to higher living standards.”

https://www.americanthinker.com/articles/2016/12/is_there_a_mismatch_between_productivity_and_workers_income.html