That graph shows the exact opposite. From near-parity with the output figures in 1947-1972, wage/compensation struggle to stay about half that in 2005-2014. In other words, the workers are not benefiting in proportion to productivity.
It's still highly correlated for most of recent history, meaning for most of the last 50 years. 2005 to 2014 is only a nine year period, and even during this period, compensation growth has been well half (0.9 vs 1.5) of output growth.
Beyond the obvious cherry-picking, that's some pretty serious statistical gamesmanship you're into. Maybe you should consider this little thing we call exponential growth, or "compounding" to a finance type. Let's look at the "Hourly Compensation (Output Price)" figures, which are the most favorable to your argument.
* For 1947-1972 it fell behind output by 0.2% per year, which sounds small, but that's 4.6% for the entire period.
* In 1972-1994 workers fell behind by another 4.1%
* In 1994-2005 (half the time) workers fell behind by another 2.9%
* In 2005-2014 (even less time) workers fell behind by another 4%
Over the entire span, workers' compensation has only increased 85% as much as productivity. More importantly, the gap is growing, not shrinking. Even using yearly figures to make differences look small, then grouping those numbers into oh-so-convenient unequal intervals, can't turn this into evidence of your original claim that wages have kept pace with productivity growth.
Isn't picking out a short period with the largest gap between compensation growth and output growth the cherry picking?
85% is a very high level of correlation. The original comment claimed:
>>But labor productivity growth doesn't cause any wage gains anymore,
Labour productivity growth obviously does cause wage gains. The data shows that the primary cause of the slowdown in wage growth has been a slowdown in labour productivity growth, not a decline in labour's share of revenue.
It's possible for both the original claim and your counterclaim to be untrue. Two lies don't make a truth. The original claim of no relationship is untrue. So is your "tracking very closely" counterclaim. There's a relationship, but it's not very strong and it's growing weaker.
> Labour productivity growth obviously does cause wage gains.
Cause? Without qualification? Not so fast, hoss. Sometimes productivity growth translates into wage increases. Other times either can change independently. The whole point - what those data really show - is that the relationship has been weakening.
> So is your "tracking very closely" counterclaim.
85% is a strong correlation. I even posted the graph for others to make up their own mind. Calling my statement a lie, when it's based on your own subjective determination of what constitutes a close correlation, is hostile and unfair.
>Cause? Without qualification? Not so fast, hoss. Sometimes productivity growth translates into wage increases
Wage growth can only come from productivity growth on any sustained basis, so yes, the latter caused the former.
> Wage growth can only come from productivity growth
To quote the top-level comment that started this thread (and which was apparently OK with everyone): bullshit. Wage growth can come increased availability of resources or funds, from regulation, from many sources besides productivity growth. Productivity growth can actually drive wage decreases, e.g. when automation makes jobs obsolete and its practitioners end up doing menial work instead. Typesetting is an example that has affected my own family. To pick another one, do you suppose that all of the long-term increase in finance-industry wage growth has been because of productivity? That repealing Glass-Steagall, or tax laws favoring certain investment vehicles and funneling trillions into mutual funds had nothing to do with it? That would be naive. The people making all that money certainly know better.
If that claim is the basis of your argument or economic beliefs, then I feel sorry for you because you're building on quicksand.
>>To quote the top-level comment that started this thread (and which was apparently OK with everyone): bullshit.
First you accuse me of lying when I was being completely honest, then you call another claim of mine "bullshit". You're being rude. Please stop if you want to carry on the discussion.
