How to Read That Productivity/Wage Gap Chart We’re Always Seeing

You’ve probably seen this chart before. It’s everywhere now. I’ve used it more than a few times over the years. It’s the chart from the Economic Policy Institute that shows that while US productivity has continued to increased over the last few decades, real inflation-adjusted wages haven’t kept pace:

I’ve seen two bad misreadings of this chart lately, and I want to clear them up.

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