- Dec 27, 2009
- Reaction score
- Los Angeles, California
How are you measuring inflation?Why wages instead of compensation?
Real wages - Wikipedia
"The Economic Policy Institute stated wages have stagnated in the United States since the mid 1970s, failing to keep up with productivity.
"According to them, between 1973 and 2013, productivity grew 74.4% and hourly compensation grew 9.2%, contradicting the neoclassical economic theory that those two should rise equally together.
"However, the Heritage Foundation says these claims rest on misinterpreted economic statistics.
"According to them, productivity grew 100% between 1973 and 2012 while employee compensation, which accounts for worker benefits as well as wages, grew 77%.
"The Economic Policy Institute and the Heritage Foundation used different inflation adjusting methods in their studies."