[digitaltrees]

Two problems with this analysis and data. 1. These gains aren’t enough to undo the decoupling of wages from productivity that has resulted in real wage stagnation. (See here https://www.epi.org/productivity-pay-gap/ ), 2. These wage increases haven’t exceeded inflation so actual household spending power has decreased in real terms. Basically consumers have less ability to spend because more profit is being captured. The problem is this profit capture (i.e. the spread between productivity and wages) is good for companies in the short term but damaging in the long term as the market shrinks due to decreased demand. After a thirty year trend of this dynamic America is reaching a brick wall where consumers will be tapped out and growth will stagnate.

[Fjolsvith]

The point is that the last two years is a change over the last 30.

[digitaltrees]

But it’s not though. There were wage increases in the 90s, mid 2000s and then the ones you site. Those relate to the business cycle and don’t undo the structural problems and trends that I highlight.

[Fjolsvith]

Well gosh. You don't undo 30 years overnight unless you have a magic wand.