What went wrong? Why was this allowed?

in fact we should lower the living standard to the world mean

that would be a good start

the problem with that picture is in a normal society, most people don't own the land or the pot or the water that's being poured onto the ground to water the seeds.

youtube.com/watch?v=fHm7P4TA97U

t. Economically illiterate

(You)

If wages and productivity are grow at a constant rate, the total profits in the company will theoretically stay the same.

Not how it works.

Increased Training of poorfags hit diminishing returns, all that $$$ went into buying computers and shit instead.

Because of this guy

Destructive regulation (like the minimum wage) strangled the labour market and the supply of employers. This will continue to be blamed on the market itself rather than the bureaucrats.

this

youtube.com/watch?v=72ntkmdF9Yk

Meme Chomsky should shut up and stick to linguistics, he's got a horrible grasp of history, ethics, economics and everything else he rambles about to get attention.

And op's image is proven wrong with this video. Surprised in only about 2 minutes.

Because it excludes 15-20% of the work force in the form of supervisory workers. These are much more well-paid than normal workers and have significantly grown as a percentage of the workforce in the past 40 years. They represent a significant portion of where the gains in wealth have gone. This chart is basically "look, if we only include the poorer 80%, it's less than if we also included the richest 20%!".

In other words, you fell for Bernie-tier memes.

> If wages and productivity are grow at a constant rate, the total profits in the company will theoretically stay the same.

Worker compensation & productivity going up at the same rate just means the same % of profit but a growing nominal profit and sales increase with the same rate of profit, as opposed to stagnating.

ie. If 1 worker goes from producing $10,000 worth of sold goods to $20,000 due to doubling productivity, and his compensation doubled, they still double their nominal profit per worker.

They fell for the "fiscal conservatism" meme.

Show me the chart with supervisory included.

Go back to sleep t.Harris.

rofl, is this video serious? Where the fuck does anyone recieve the benefits he listed employees get? I worked 6 years at a place and I didnt get any of that shit. fucking nu-males armchair theoriziing rofl

They realized there was ways they could increase productivity without having to raise pay.

I remember reading about this guy somewhere. I don't remember where, but I remember I hate his fucking guts.

>rofl, is this video serious? Where the fuck does anyone recieve the benefits he listed employees get? I worked 6 years at a place and I didnt get any of that shit.

You had pretty worthless job skills, then.

by not working at your local food store, bank teller, Retail style, or pretty much a job where your replacement factor is pretty easy and working at a place like Nike (Outside of the retail), Apple (management or store supervisor and greater), a Financial Firm, Manufacturing, Engineering, Lumber, ect.

Hell, even UPS employees are given benefit at the bitch level. That package is better as you progress into different levels. Just because you (Also known as anecdotal evidence) cannot find them does not mean they (The benefits as a whole) do not exist.

Here is one example Lam Research CN Field Service Engineer I (Entry level position)

Starting pay is $18.50 per hour, this includes a company held 401k matching retirement program program, a healthcare package provided by Kaiser, a college tuition assistance package, a stock options program, paid vacation and sick leave program. More over you will have the opportunity to receive bonuses for efficient work.

If you work over 10 hours in the manufacturing area the next recorded hours will paid at OT pay.

My job at a local down town accounting firm.

Accounting Specialist 1 (This is before I hit payroll accountant side of my company)

Entry pay is $14.75 per hour. 401k Retirement program, healthcare plan brought to you by Moda Healthcare, paid sick days and vacation leave after working for 1 year, private parking, stock option plan, and free tax filing.

Hell I can even go into the benefits of the US Military if you wish.

Labor didn't buy the companies they worked for and reform it into a co-op. So that they could share in the profits gained from automation and protect their jobs from outsourcing.

Labor didn't lobby and vote to prevent outsourcing and regulations that made them noncompetitive with foreign labor.

The productivity increased because of globalization, but the wages stagnate because there is no manufacturing left in America to pay people for.

>these are benefits

Lol you really are cucked

You know people used to get pension not shitty 401ks right? Fuck off

>being this mad

20somethingfinance.com/pensions-vs-401ks-why-you-should-care-that-pensions-are-going-extinct/

money.usnews.com/money/blogs/on-retirement/2013/05/15/6-reasons-a-401k-is-better-than-a-pension

1: Pension plans are dying as a retirement option. The only places you are going to find pensions from are Union jobs or Government jobs. Most of the private sector turned away from the "pension plan."

2: if a company goes tits up your pension is done. Even if the company is approved for both chapter 7 Bankruptcy

3: 401ks are based on how much you personally put instead of what your fellow employees put in (IE the actual version of "cuck")

4: at seven percent interest your 401k doubles every ten years. This is based on average growth, minus your contributions.

5: 401ks are plans that you personally monitor and have control over, you can be as risky or as safe as you wish to be with it.

Tell me again why I am "the cuck" when I can personally manage my retirement fund? IIRC the 2 main reasons why pensions are dying as a retirement is because a corporation can cuck you if they file for bankruptcy and null all of their debt, 2 base payments for pension are that similar to Social Security and are barely able to cover day to day expenses.

You are either under 18 and listen to your "Boomer" grand pappy for far too long or B are a Boomer and do not understand the current economy of scale and fail to realize that the retirement market is changing like how your dick is changing from active to having erectile dysfunction.

Fpbp

>literally the entire economic and political world fell for 'the free market will fix it' meme

Women and third worlders( immigrants and globalized trade) are wage cucked too and that suppressed wages.

The petrodollar, financialization of western economies, the Chicago School, the "service based economies" meme and Neoliberalism happened.

Stupid
>big gubmint controls economy
>big gubmint is controlled by bigger gubmint
>lmao free market

Just plain dumb
>we need more big gubmint
>"It will fix itself!"
>unlike the free market!

Not an argument.

>supervisors aren't paid wages

Hmmm

You need to show compensation/productivity.
Although it looks better thanit still has about a 70-80% gap.

>Hell I can even go into the benefits of the US Military if you wish.

Dude you made your point no need to slaughter him. The military has crazy good benefits to make up it's lower then usual pay.

This was around the same time labor unions started getting beat down. Without union strength, the middle class disappears.

Still stupid

Mass immigration + automation

but overkill is the best kind of kill

>please do not start threads about events taking place less than 25 years ago

A+

This reply is an island in a sea of shit desu

not an argument

Keep on investing in your 401K,it is a grand idea.

In fact, put all of your savings in it, nothing will happen, we swear!

Woman in the workforce + the 1965 immigration act.

Technology?

Should you be paid more if your typewriter is replaced with a computer?

Dunno.

I would say yes. A computer is inherently more complex to use than a typewriter.

Not an argument.

I never said it was risk free dingus

>This reply is an island in a sea of shit desu

is actually not an argument but an opinion. I cannot derive that anything from it but a response of the equivalent of "Nuh-uh." There is nothing to argue against especially when you do not put any debatable content on the field. So my original response kills your response because it has A: points and B: credible sources behind it.

You are on Veeky Forums, not /pol/ actually use your brain here and not "Nuh-uh" respond.

I should also add, I never said put all your eggs in one basket either.

>You need to show compensation/productivity.

Done.

The chart specifically says "nonsupervisory workers".

>American reading comprehension

Immigration

>supposed to get

...

Jews

harris' take down of chomsky was amazing.

en.m.wikipedia.org/wiki/Nixon_shock

sure is young in here

Oh hi Mr. (((expert)))

A screenshot of a youtube video isn't proper evidence.

Also, that's not comparing what I asked for.

blogs.wsj.com/economics/2015/09/08/inside-the-fight-over-productivity-and-wages/
>Who is the “typical worker”? Messrs. Bivens and Mishel have chosen “production and nonsupervisory workers” to represent the masses. Workers in this broad category account for about 80% of private-sector payroll employment.

>Critics call this cherry-picking. A better measure, suggest critics like Scott Winship, an economist at the right-leaning Manhattan Institute, would be to include all workers, since productivity gains are presumably being driven by the entirety, and not just 80%, of the workforce. The new report also includes another chart that plots average hourly compensation for all workers. The gap, while narrower, is still significant.

Good try though user

does not compensate with benefit packages. IE A false narrative as pointed out in video here

Not an argument

is an argument guy. You're not on /pol/, this is Veeky Forums we can be intellectually honest here.

Point 1: Productivity gains are not equal by sector.

Point 2: You have to adjust by total compensation not just hourly wages because total compensation (Benefit packages) also have an equivalent monetary value. This isn't calculated with CPI (Consumer Price Index) because CPI does not calculate consumer choice or substitution of goods

Point 3: The graph in OP's chart would be better reflected using Implicit Price Deflator because it does calculate what CPI misses, by doing so the gap between compensation and productivity is almost nill

Point 4: Because the graph doesn't calculate Productivity with Net GDP, it misses out on the productivity value of trade as well as depreciative value of products (like computers) that lose value over time compared to say a building.

So the graph in pic is actually accurate and destroys OP's pic graph.

>he bought the Koch brothers' billion-dollar meme

The federal minimum wage has been continuously established 1938, two decades before the beginning of OP'S graph.

Is there a version of this graph for whites only?

>real net gdp per hour

Not the same as labor productivity

K

Now post some more "evidence" from (((experts))) to support you weak "argument" lmao.

Wages have not kept pace with productivity gains. That is a fact. Doesn't matter how you slice it or pretend that's not an issue because of some ephemeral "benefits" which employers are under no obligation to grant and in fact most don't. You can not offer a valid justification for this.

>(((experts)))

Being an edgy neonazi fallacy. Not an argument.

I did it for your benefit, assuming you are the poster I think you are.

Obviously the problem was big government and the market was not free enough, we need more deregulation

Chomsky has a pretty horrible grasp of linguistics as well though.

Fpbp

America got cucked

Step one: Click on the Youtube link that this user posted

Step Two: Scroll down to the Published date menue

Step Three: Click the Facebook link

Step Four: Read the essay and the sources provided. There are 14 sources.

I'd post the 14 sources but unfortunately Veeky Forums believes I am posting spam. The group "We Are Capitalists" are a group of students and a PhD Professor from Chicago University in Economics. If you wish to challenge them they are more than happy to comply.

>Weak argument

I am sorry that you do not understand what a "weak argument" is.

You tried to state that "Wages have not kept pace with productivity gains" but yet there is a video and a link in said video with sources backing it up.

If you are going to challenge an argument you must sift through the reference material that the other person uses. OP's image is from the EPI (Economic Policy Institute) and even I was able to point out the flaws in its calculations based on user's video here and even found the link to source material of supporting evidence as well. All it takes is for a little effort to research and look for sources.

OP's source is here epi.org/productivity-pay-gap/

I have just started 300 lvl econ classes at PSU and when it comes to Economics research and understanding is paramount to any basis of theory and practice. Stop being a lazy bum because if you would have checked the video you would have found the source material.

>PhD Professor
Ask me how I know this is a /pol/tard that didn't get accepted into uni

I don't understand that's like literally the opposite of cherrypicking.

Having a PhD does not mean they are an active professor.

>2016
>free market fundamentalists still exist

it was not allowed it was made to happen.

Noam Chomsky isn't even an economist you absolute bellend

This

Ask me how I know this is a /pol/tard that didn't get accepted into uni

>cannot challenge the evidence presented forth
>must deflect must deflect MUST DEFLECT

you're cute

>chicago school (((experts)))

lol, you are the guy I was thinking of.

What you are doing is the equivalent of me linking an article published on a union's website and written by a pro-labor PhD professor. Stop drinking the ideological kool-aid and realize you are getting fucked by your corporate masters. Whether you acknowledge that or defend them is immaterial, you are still getting used and abused like everyone else.

I didn't even read this thread, I was just scrolling the front page and saw "PhD professor". I bet the closest you've ever gotten to a uni was community college.

There's a reason they call them cuckservatives. They've been cucked by the Jew into thinking they deserve to be exploited.

I blame the Jews.

>your corporate masters
>a person holding a PhD is not a credible source
>ideological kool-aid

Ok, sure. Net GDP isn't empirical evidence, Implicit Price Deflator isn't a measurement of empirical evidence, as both of them are just full of crap. So the wild tangent that you decide to go off on is a valid argument.

Buddy, you just got owned and now you are deflecting from the topic that was brought up by OP and you have no more evidence to support your position so now you have to go to an almost unmeasurable extreme to try and support your point. That my friend is a weak argument. You've lost your strain of evidence/information because it's been debunked and now you dive to a completely different topic that has very little to the issue at hand.

About as on par with "White privilege" and "muh patriarchy," or "insert-ambiguous-arbitrary-boogie-man-here" c'mon guy. You're on Veeky Forums not /pol/ critical thinking and reason happens here.

You realize people with PhD's disagree with each other right? You can find many things contradicting each other written by people with PhD's.

yes this is why you check the empirical evidence that backs them up. This is why Austrians are never going to have a comeback at all in the economics field, because they lack empirical evidence.

This is why when OP's image is posted that it is important to note what tools was used to attain such information. Which was GDP and hourly compensation. This does not complete the picture as pointed out by the video and my recap of said video here . Just hourly compensation is only part of a person paycheck worth. Other styles of compensation do exist, paid leave, healthcare packages, 401k, pensions, vacation, etc. Just compensating for hourly wage and GDP paints a very unfulfilled picture. Like having a painting by Doménikos Theotokópoulos but you are only given half of it instead of all of it.

The debates between Economists happen all the time. From Paul Krugman and Thomas Sowell to Slavoj Žižek and Ha-Joon Chang. What is important however is to see the empirical evidence to the field that they bring. So far from what I have presented, The EPI chart is flawd based on the fact that they've only calculated for GDP and Hourly wage. This leaves a very incomplete picture.

*flawed* fuck me