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Newfield’s The Great Mistake: The Big Picture (2)

Newfield’s The Great Mistake: The Big Picture (2)

The second “macro” setting for the disinvestment in public education that Newfield highlights is the disconnect (since 1970) between rises in productivity and rises in wages.  Since economic growth is driven primarily by two factors–increasing population and increasing productivity–the economy’s health is dependent on making workers more productive.  At least in the years from 1940 to 1970, when workers became more productive, their additional contributions to the economic well-being were registered fairly directly in higher wages.  And those higher wages tracked very closely with higher household incomes.

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