Capitalism has failed

but free market fixes everything, so that these things cannot effect real economy, right bucko?

• Even then, two different price deflators are still being used - one to measure compensation and another to measure productivity. Instead, to compare apples to apples, you must apply the same inflation adjustment to both the productivity data and the compensation data. [7] We can do this via the “Implicit Price Deflator,” which accounts for goods and services that businesses sell to other businesses, or exports to other countries. (something the CPI doesn't reflect) It's also not limited only to a "fixed" basket of goods, as the CPI is, and therefore reflects changes in consumption patterns such as substitutions or the addition of entirely new goods/services. [10] Furthermore, compensation deflated by CPI is NOT appropriate when evaluating its relationship to productivity, since CPI adjusts for imported final products (which are not part of domestically produced final products). [7]

• Once adjusted using the same deflator, the gap between productivity and compensation almost vanishes. [11] [12]

• Additional research corroborates this. In a paper entitled “DID WAGES REFLECT GROWTH IN PRODUCTIVITY?” Harvard economist Martin Feldstein found that, while productivity doubled in the U.S. nonfarm business sector from 1970-2006, TOTAL compensation per hour increased at approximately the same annual rate as productivity so long as the same measure of inflation was used to adjust both earnings and productivity. [7] Even the BLS acknowledges that – once adjusted using IPD – compensation growth followed productivity growth up until around year 2000. [13] (Below, we'll explain what needs to be adjusted in the BLS data - and why - as to account for changes after 2000.)

>what is automation

Now fuck off commie scum

• As for the remaining gap, this is because productivity rates are slightly overstated in two ways:

1. For one, the BLS doesn't properly account for the prices of imported goods that are then used in domestic production. [2] Imagine a factory which uses inputs from India but then switches to China because the materials are being sold to us cheaper there. The BLS would observe our final products being created at lower cost and reason that productivity had increased. But because the positive benefit arose from foreign trade rather than from worker productivity, one might confuse the source of the gains. [2] This is notable since part of this remaining gap between productivity and income corresponds with our ever expanding trade relationship with China. Even Benjamin Mandel of the Federal Reserve Board of Governors concluded that the official numbers overestimate productivity. In his paper, "Offshoring, Terms of Trade and the Measurement of U.S. Productivity Growth" he argues that “the mis-measurement in the terms of trade spills over into productivity growth" and that when trade is understated productivity then becomes overstated. [5]

2. The other factor to consider is capital depreciation, which has accelerated in recent decades due to the rapid rate in which computerized assets become obsolete. An investment in a building, for instance, lasts a lot longer than investment in computers. It follows, then, that since firms now rely more heavily on computers than they did 40 years ago, their “depreciation rates have increased.” [2]

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Hmm. The disconnect seems to have occurred right around the time the jew bankers took us off the gold standard and starting printing money like crazy to enrich themselves.... sounds like capitalism to me!!!

fuck off sweetie poster

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The BLS, however, measures GROSS productivity (total), not NET, so they do not account for this increase in depreciation rates. In other words, if a company had to replace its computers every five years instead of every ten, investors and business owners would have fewer dollars left over to dispense among workers – after production - since the cost of replacing those computers was part of the productive process. Because of this added cost, productivity often wouldn't be as high as the BLS reports since they didn't adjust it when comparing to the reduced depreciation rates of the past. This is why “Real NET GDP per Hour," or NDP, should instead be used to help calculate productivity as opposed to GDP.

• When using Real Net GDP Per Hour to calculate productivity, it turns out, compensation increases DID match productivity increases and have for decades. [14]

CONCLUSION:
Notice that none of these adjustments distorted the well established and non-debated link between productivity and income from 1945- 1975. Rather, they managed to accurately reflect the distant past while also accurately reflecting the more recent past. This is an extremely important point to observe since, if these adjustments weren't rooted in sound logic, they would have entirely distorted the 1945-1975 era. It's quite clear that didn't happen.

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The production is offshore this is how you can afford your shitty iphone you just posted from.

Due to statist intervention in the free market
Fuck off commie

Is this going to more than just, the parts aren't the whole so there is no whole, get back to wageslaving?

Capitalism is a false god

Digits don’t lie faggot

I don't understand. A worker from today is not different from one from 30 years ago. The increase in productivity has nothing to do with him. Why should he earn more?

it's because over the last years more and more women came into workforce. Before there were mostly men working.
Double the workforce means half the wages.

Get a job dickbag.

Do you have a link so I can save this?

>a simple google search debunks a right wing dip shit

Imagine my shock.

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Well I'm sure this has something to do with it, we effectively abandoned a real gold standard in 1933. We abandoned the silver standard when we debased the quarter and dime, and we abandoned even copper as a standard in 1982.

The real issue is that labor has been kept artificially oversupplied by the Hart Cellar act of 1965 and further work visas. We do NOT have a labor shortage in this country, we have a labor oversupply, seeing that a labourer can scarcely afford a wife, a home, and a child off his back alone.

>---------------
>Sources

1: cepr.net/documents/publications/min-wage1-2012-03.pdf

2: economics21.org/files/e21ib_1.pdf

3: epi.org/publication/ib330-productivity-vs-compensation/

4: forbes.com/sites/scottwinship/2014/10/20/has-inequality-driven-a-wedge-between-productivity-and-compensation-growth/&refURL

5: bls.gov/news.release/pdf/prin2.pdf

6: www2.gwu.edu/~iiep/waits/documents/Mandel-Offshoring.pdf

7: heritage.org/jobs-and-labor/report/unprecedented-minimum-wage-hike-would-hurt-jobs-and-the-economy

8: heritage.org/~/media/7F9B1B59C1314871AE479394E93E606D.ashx

9: nber.org/papers/w13953.pdf?new_window=1

10: investopedia.com/terms/p/pce.asp

11: urban.org/urban-wire/why-earnings-havent-stagnated-despite-what-you-may-have-heard

12: investopedia.com/terms/g/gdppricedeflator.asp

13: thf_media.s3.amazonaws.com/2015/pdf/OpportunityForAll.pdf

14: bls.gov/news.release/archives/prod2_12032014.pdf

15: bls.gov/opub/mlr/2011/01/art3full.pdf

16: economics21.org/html/workers-get-same-slice-pie-they-always-have-1186.html

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TLDR: Get bent OP and get on the helicopter

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Communism isn't the answer yet. Maybe in several decades when everything is automated.

4chains only has a 2000 character limit. So I broke it up into parts and included sources at the end

Your economy has no jobs

>haha you've been debunked
>pic actually proves what right wing dipshit was saying:
>"going off gold standard ruined everything"
>year coincides exactly when work-wage disparity starts
????

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it's a natural condition caused by inelastic substitution between commodities. you basically are willingly to your labor for same amount of real goods, regardless what the productivity is, will capital owners have zero relative demand for this goods. which then leads to baumol disease

Closeted commie detected

I think someone is just memeing, i wouldn't take this larper seriously

How can people in the 21 century be stupid enough to unironically be communists?

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Name 1 economic system that has worked, or is working better than a capitalism based economy.

Believing that resources change hands because of muh greed or muh racism is the modern day equivalent of believing that Gods are responsible for the change in seasons. Boogeyman theories make sense to people who don't understand how market pricing works to allocate scarce resources, similar to how divine intervention made sense to ancient plebs who didn't know that the earth is tilted on its axis. It takes a shit long time for the masses to be dispelled of retarded shit because, well, they're the masses

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The free market fixes things when there is a free market

And it's a relative concept, not an absolute one