>so, the common sense conclusion here is that there is a causal
>relationship between the low wage growth and the high profit growth,
>ie, that profit growth is so robust precisely because wage growth
>has been suppressed. right?
>
>can one actually make that case? or do we think there's something
>else going on?
One can absolutely make that case. In fact, it's the only reasonable explanation for where the productivity gains of the last 4 years have gone. Into profits and upper-managerial pay.
Robert Gordon has a paper on this (which I haven't read yet): <http://faculty-web.at.northwestern.edu/economics/gordon/BPEA_Meetingdraft_Complete_051118.pdf>.
Doug