this post was submitted on 12 Apr 2024
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Two points I found interesting:
I don't know if there's data but it could explain why the correlation between wage growth and productivity decoupled over the last 40-50 years. The standard assumed causation is
productivity -> wage growth
, but that's shown to be false by the decoupling. If however we assumewage growth -> productivity
causation then at least that doesn't violate the decoupling data.You're saying that our economy is addicted to using low wage earners (like TFWs) keeping businesses profitable without having to invest in improving labour productivity.