From Ambrose Evans-Pritchard:
Prof Stiglitz, a former chief economist for the World Bank and winner of the [Nobel] Prize in 2001, said real median pay for full-time male workers has fallen back to levels last seen 40 years ago, yet productivity has risen 100pc over the same period.
The workers have been excluded from all the gains, or as he puts it, we now live in an “inherited plutocracy” where the rich accumulate ever more in a perverse dynamic that will not necessarily self-correct.
This argument by Prof Stiglitz is simplistic. Productivity may have doubled over the last 4 decades, but this is primarily due to tools at the disposal of the worker today and not because people are working harder. Real annual investment per employee has also doubled over the last 40 years.
A counter argument would be that workers today may be better trained/educated in order to operate all that expensive equipment. The truth probably lies somewhere in between.