Pay vs. productivity growth around the world

gap-productivity-compensation-countries

Double click to enlarge.

Carson_US-MFG_d1

Click to enlarge.

The gap between growth of workers’ productivity and workers’ wages exists in a number of countries, but the gap is much wider in the United States than in other advanced industrial countries.

I took the second chart from an on-line article by an analyst who thinks this is a good thing, not a bad thing.  This analyst thinks it means that U.S. manufacturing is becoming more competitive internationally.

The failure of wages to keep up with productivity could be a good thing if it meant that the profits of U.S. industry were being plowed back into modernizing factories and infrastructure, expanding industrial research and creating new industries.  Do you see any sign this is happening?  Or is this just income being redistributed upward?

Click on US Manufacturing Restores Competitive Vigor for the source of the second chart and an optimistic view by Joseph G. Carson on the AllianceBernstein Blog on Investing.

Click on Signs of Factory Revival Hard to Spot for a skeptical view in the Wall Street Journal.

international.manufacturing.pay3.1

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Hourly-international-compensation-cots-in-manufacturing

Source:  U.S. Bureau of Labor Statistics.  Double click to enlarge.

Click on International Labor Comparisons for more statistics from the U.S. Bureau of Labor Statistics.

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