Productivity Without Wage Gains

It’s always something, isn’t it? Now, the strong dollar restrains economic growth… Exports are off, imports are up… The trade gap widens… Savings from lower gasoline and heating prices offers some offset, but since a majority of Americans have little cushion in their bank accounts or retirement plans with many living pay check to pay check, spending is better but not off the charts.  After lagging in the post-recession malaise, car sales finally spurt. But this welcome activity results from a questionable rise in subprime lending, encouraged by securitizers. And we know where that will lead eventually. In addition, suddenly layoffs mount in recently surging, but now fading energy belt regions.

The “economic experts”, meanwhile, seem confounded by why wages have stagnated despite the significant drop in the unemployment rate. Are they just caught up in sclerotic paradigms like productivity always leads to growth and more jobs or is it just too inconvenient to point out the consequences of the significant structural shifts well under way caused by globalization and technology?