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All right everyone Im Logan Allec, Im a CPA, and today I want to talk to you about why wages havent tracked productivity since the 1970s. Now the usual understanding of wage labor is that youll get paid a certain amount per hour or per week based on how productive you are. So this is the idea of trickle down economics, that we just need to stimulate economic growth and then well see wages go up at all levels. But in this video Im going to look at a report from the Economic Policy Institute which found that even though productivity rose by a little over 72 percent from 1973 to 2014, so 41 years, median hourly compensation only went up by just under 9 percent. In other words workers had to produce eight extra dollars of value just to earn one extra dollar in wages. This goes against some common assumptions about market economics, so hopefully in this video I can help explain why wage growth has slowed down over the past 50 or so years. OK I want to start with the data, many of you
