Not an analysis I expect from MIT’s technology review, but there it is.
Christopher Mims looks at the measures of productivity, output and then adjusts for Total Factor production. He acknowledges that he’s not an economist, but the evidence he is looking at alarms him.The first table he pulls compares productivity with hourly compensation. 1975-77 is critical, it marks the moment when US productivity and hourly wages part company for the first time in the post-war period.
I won’t steal Mims’ punchline but he then looks at these figures when you factor in automation. Guess what happens?
Go check it out: