Understanding the disconnect between productivity and hourly compensation.

www.epi.org/publication/understanding-the-historic-divergence-between-productivity-and-a-typical-workers-pay-why-it-matters-and-why-its-real/

Recently I saw a post based on the graph given in this article. The premise is that as our productivity has increased in the last several decades the hourly compensation for workers has remained almost stagnant, corrected for inflation, due to CEOs and the people at the top taking the majority of the increased productivity as profit.

I’m curious what you all make of this but my understanding of this is that as productivity has gone up prices of goods has gone down allowing companies to sell products for less causing a majority of workers to be paid about the same.

So yes while productivity has gone up costs of goods has gone down due to market competition and in turn compensation has remained somewhat steady while increasing slightly.