Productivity and Compensation

Good chart from Kash:

A healthy share of this is clearly the growing role of mega-rich financiers. Another chunk of it is superstar entertainers. But as Mike Konczal suggests, I think Federal Reserve policy is another important driver here. You had a period when real compensation grew faster than productivity, then you had a span of stagflation, and then we’ve had a long period wherein wages basically don’t increase in part because the Fed doesn’t want wages to increase.