Adjusted for Productivity: A New Way to Rethink Wages and Economic Fairness

Adjusted for Productivity: A New Way to Rethink Wages and Economic Fairness

For over a century, “adjusted for inflation” has been the standard way economists and policymakers measure the real value of wages and economic growth over time. But what if we introduced a new metric—Adjusted for Productivity? What if we assessed worker compensation based not just on purchasing power, but on how much more productive each worker has become due to advances in technology, processes, and education?

This seemingly simple idea could have radical implications for the economy, public policy, corporate practices, and the very fabric of how we define fairness in capitalism.

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The Productivity-Wage Gap: A Brief History

Since the 1970s, productivity in advanced economies—especially the United States—has soared, thanks to automation, software, AI, and globalization. But wages have stagnated for the average worker. According to data from the Economic Policy Institute, between 1979 and 2020:

• Productivity grew by 61.8%

• Hourly compensation grew by just 17.5%

In a world “Adjusted for Productivity,” real wages would be much higher. If compensation had kept up, median workers would be earning tens of thousands of dollars more per year than they do today.

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What Would "Adjusted for Productivity" Mean in Practice?

It could be used in three ways:

1. A new wage benchmark – Employers, unions, and governments could use productivity-adjusted compensation as a guideline for setting fair wages.

2. A policy framework – Tax incentives, wage floors, or profit-sharing laws could align pay with productivity.

3. A public narrative shift – Just as “adjusted for inflation” changed how we view prices, “adjusted for productivity” could reframe how we view economic fairness.

Imagine a society where workers say, “I don’t just want a raise to beat inflation—I want my fair share of the productivity I helped generate.”

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Counterarguments – And Why They Fall Short

1. "We can’t raise wages or we’ll hurt competitiveness."

This is the most common refrain from opponents of wage increases. But if productivity has risen, then businesses are getting more output per worker. Higher wages in this case don’t reflect inefficiency—they reflect shared success. In fact, higher wages can lead to:

• Better employee retention and morale

• Increased consumer demand (because workers have more to spend)

• Incentives for further innovation (to maintain margins)

Moreover, companies enjoying record profits while suppressing wages are not protecting competitiveness—they are extracting surplus value.

2. "Some workers aren’t more productive—they just benefit from tech."

True, much of the productivity gain comes from systems, not individual effort. But this is a flawed argument. Companies adopt new technology because it enhances the value of their workforce. It’s a symbiotic relationship. If your software allows one worker to do what used to take three, that gain should be shared.

We don’t blame the steam engine for productivity gains in the 19th century—we credit the companies and workers who adapted it. Same goes today.

3. "Markets set wages, not fairness."

Yes—but markets are not neutral. They are shaped by power. When unions are weak, worker bargaining power is low. When monopolies dominate sectors, they can suppress wages. “Market wages” don’t always reflect value—they reflect who has leverage.

Adjusting for productivity wouldn’t override the market. It would inform it, giving us a clearer lens through which to understand what workers truly contribute.

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Potential Economic Impacts of Widespread Productivity-Linked Compensation

1. Stronger Consumer Economy

More income for workers = more spending = stronger demand = more economic activity. This is especially vital in a consumer-driven economy like the U.S., where 70% of GDP is tied to household spending.

2. Reduced Inequality

If the gains of AI, automation, and global supply chains were shared fairly, it would close the gap between the wealthy and the working class. The billionaire class would still be rich—but the middle class would not be hollowed out.

3. More Political Stability

Economic despair breeds political extremism. Fairer distribution of productivity gains could reduce populist backlash, anti-globalization sentiment, and distrust in democratic systems.

4. Business Innovation

If companies can’t rely on wage suppression to maintain margins, they may lean harder into true innovation—better products, better systems, more value creation.

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Why This Matters Now

We are at the dawn of the AI era. The potential for productivity to skyrocket is real. If we don't build fair compensation systems now, we risk repeating the mistakes of the last 50 years—where gains go to capital, not labor.

“Adjusted for Inflation” was the tool of the 20th century.

“Adjusted for Productivity” should be the standard of the 21st.

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Call to Action: Policymakers, business leaders, and citizens should begin integrating productivity-adjusted thinking into wage debates, economic modeling, and collective bargaining. A better economy isn’t just about more—it’s about fairer. 

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The Free Market Myth: How Corporate Power is Undermining America’s Economy, Democracy, and Health

The Free Market Myth: How Corporate Power is Undermining America’s Economy, Democracy, and Health

America likes to call itself the land of the free, and for decades, that phrase has been used to suggest we live in a “free market economy.” But peel back the layers, and the reality is starkly different. This is not the land of competitive capitalism—it’s the land of corporate concentration, regulatory capture, media manipulation, and political stagnation. America is not suffering from too much freedom; it’s suffering from freedom co-opted by a handful of corporations with too much power and too little accountability.

Corporate Concentration: The Death of the Free Market

In a truly free market, competition drives innovation, lowers prices, and empowers consumers. But in America today, most industries are dominated by a handful of behemoths. From Big Tech to Big Pharma, Big Ag to Big Finance, mergers and acquisitions have choked competition and erected walls around entire sectors. Small businesses are crushed not by better products, but by predatory practices, lobbying, and economies of scale only the giants can exploit.

The result? Prices rise, wages stagnate, and the market becomes less responsive to consumer needs. Monopolistic behavior isn’t a bug in the system—it is the system.

Corporate Capture of Democracy

This economic concentration bleeds into politics. The same conglomerates that dominate the market also bankroll elections, draft legislation, and flood the airwaves with narrative control. When corporations can spend unlimited amounts on political campaigns and lobby legislators behind closed doors, democracy becomes theater. The people may vote, but policy is shaped by the donor class.

It’s no coincidence that popular, bipartisan policies like universal healthcare, wealth taxes, or serious climate regulation are perennially stalled or diluted in Congress. Corporate interests don’t just influence policy—they often write it.

The Media Mirage: Manufactured Consent

Freedom of speech may be enshrined in the Constitution, but freedom of information is another story. Six corporations control the vast majority of what Americans read, watch, and hear. Corporate media doesn't inform the public—it pacifies them. It frames debates within narrow boundaries, vilifies dissent, and manufactures consent for the status quo.

Take climate change. While scientists scream for urgent action, corporate media outlets often reduce the issue to shallow talking points, false equivalencies, or outright denialism. And don’t expect hard-hitting investigative journalism into corporate malfeasance—those advertisers pay the bills.

The Obesity Crisis: A Corporate Crime Scene

Nowhere is the lie more blatant than in America’s public health crisis. Look at obesity. The media wants you to believe it’s a moral failure—a lack of discipline or willpower. But that’s propaganda.

The truth? America’s obesity epidemic is engineered. Corporate food giants pump billions into developing ultra-processed, hyper-palatable, addictive foods. They’ve destroyed the gut biome with chemical preservatives, artificial sweeteners, and hormone-disrupting compounds. Then they sell you pills, surgeries, and shame as solutions—while lobbying to keep regulations weak and subsidies strong.

It’s not a personal failure. It’s a systemic assault on public health for profit.

Inequality: The Crisis No One Will Touch

While the climate crisis is urgent and visible, economic inequality is a slow-burning existential threat—and one we talk about far too little. The wealth gap in America today rivals that of Gilded Age Europe. A few own everything, while millions live paycheck to paycheck.

Inequality is not just unfair—it’s unsustainable. It fuels despair, addiction, violence, and political extremism. And yet any serious proposals to redistribute wealth—through taxes, universal services, or worker empowerment—are met with howls of “socialism!” by those who benefit most from the system’s dysfunction.

Time to Reclaim Real Freedom

What we face isn’t a crisis of capitalism or democracy alone—it’s a crisis of corporate capture. If America is to live up to its ideals, we need to dismantle this cartel of control:

• Break up monopolies.

• Get corporate money out of politics.

• Regulate toxic food and chemicals like the public health threats they are.

• Reclaim the media for the people.

• And build an economy where workers, not shareholders, define success.

The stakes are high. Because when corporations rule everything—from what you eat to what you think—freedom isn’t just dead. It’s repackaged, marketed, and sold back to you.

And that’s not freedom. That’s servitude with better branding.