[sjy]

The article argues that “the minimum wage should keep pace with productivity growth,” not “pay should keep pace with productivity gains.”

Suppose a business with a profit margin of 20% increases its revenue by 10% without increasing labour input. If the owner captures that 10%, the profit margin is now 27%. If the revenue is paid out as higher wages (“pay keeps pace with productivity gains”), the profit margin falls to 18%. If wages increase by 10% (“pay keeps pace with productivity growth”), the profit margin remains constant and profit can also increase by 10%.

What happens to the profit margin of individual businesses will vary. But across the entire economy, it’s reasonable to expect that the wage share will remain pretty constant, and until the 1980s, it did. https://en.wikipedia.org/wiki/Wage_share