One of the most important graphs in economics shows a divergence between increases in labor productivity and worker take home share since at least the 1970s
> If you’re 10x more productive, someone is willing to pay you 10x as much as they were last year, because you’re producing 10x as much value as before.
Has your salary increased 10x?
That's too simplistic because the rest of the economy isn't static. Everyone is getting access to AI tooling, if the whole field gets a productivity increase then the baseline changes, you don't just become 10x more valuable. The previous work is now way less valuable than it was before. It's also not clear to me that the productivity gains from AI convert 1:1 into profit gains
Salary stays the same. A bunch of others are fired. You’re expected to produce their level of output as well as your own. After all, you’re 10x more productive now?
If you’re 10x more productive, someone is willing to pay you 10x as much as they were last year, because you’re producing 10x as much value as before.
Has your salary increased 10x?