American Capitalism Isn't Broken After All

Contrary to recent reports, productivity is still the key to prosperity.

Productivity might make it affordable.

Photographer: Spencer Platt/Getty Images

One of the best-loved stories about the squeeze on middle-class incomes in the U.S. concerns the long-term divergence between wages and productivity. This goes as follows: Wages have stagnated for decades even as output and profits kept going up. Owners of capital grabbed all the gains.

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