Earlier quoted context omitted.
Sounds like wages are about 20 years removed where they should be then, since cost of living didn't exactly stagnate for 20 years
"Real" as opposed to "nominal" in this context means inflation adjusted, which means that wages have been increasing faster than inflation for 30 years. Now, it is true that some components of cost of living, most notably housing, have (especially in particular regions) also increased in cost faster than the general inflation level. But that's not due to some inherent breakdown between productivity and wages. It's du…
If you look at the graph you posted and carried the slope of the pre-70s trajectory forward, assuming that the 70s-90s slump had not happened, would the graph end in the same place it is currently?
No. Not even close
> So if you want to have that discussion, that's fine, but it's totally separate from the original discussion about productivity and wages.
It's absolutely not a separate discussion, the end result is that the same "real wage" that used to provide a comfortable life is now poverty
You cannot just shrug your shoulders and say "well incomes are matching productivity so this is fine actually"