{"id":11086,"date":"2015-08-15T09:57:47","date_gmt":"2015-08-15T14:57:47","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11086"},"modified":"2015-08-15T09:57:47","modified_gmt":"2015-08-15T14:57:47","slug":"that-70s-show-episode-2","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11086","title":{"rendered":"That 70s Show \u2013 Episode 2"},"content":{"rendered":"
\n

That 70s Show \u2013 Episode 2<\/a><\/h3>\n
\"NonSup<\/p>\n
<\/div>\n<\/div>\n
\n

In\u00a0Episode 1<\/a>\u00a0we showed how the US labour\u00a0market changed dramatically from the 1970s on back of excess money printing which allowed Americans to buy tradable goods on the international market, hollowing out its own manufacturing base, and essentially creating an unsustainable consumer driven economy where the broad masses get their employment within service sector.<\/p>\n

We will now take that a step further and look at what this has meant for the US worker. As our first chart shows, non-supervisory\u00a0real<\/em>\u00a0wages stagnated in the early 1970s and has essentially remained flat ever since.<\/p>\n

Measured labour productivity on the other hand continued upward, but its rate of growth shifted down. More on this in our next blog post.\"NonSup<\/a><\/p>\n

Source: Bureau of Labor Statistics (BLS), Bawerk.net<\/em><\/p>\n

The American middle class,\u00a0i.e.\u00a0<\/em>the non-supervisory workers, managed to grow their consumption in the midst of stagnating wages through<\/p>\n