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David Landy's avatar

It would be fascinating to see data pre-1776 in America.

Swami's avatar

Here is how my AI summarized this article. I agree with it.

1. Ambiguous use of “wages” or “relative wages.”

If the reader hears “wages stagnated,” they may infer broad middle-class decline. But the stronger empirical claim is narrower: typical labor compensation underperformed GDP/productivity/top incomes. That is important, but it is not the same thing as ordinary Americans getting poorer.

2. The chart visually compresses several distinct phenomena.

A falling relative wage can reflect worker exploitation, yes. But it can also reflect globalization, rising returns to capital, rising returns to entrepreneurship, changing household structure, China’s labor-market integration, immigration, automation, benefits replacing cash wages, or high-skilled assortative mating. The chart does not sort these mechanisms.

3. “Wealth pump” is a loaded metaphor.

It suggests extraction from workers upward to elites. Sometimes that is accurate: rent-seeking, monopoly, regulatory capture, zoning, credential cartels, political access. But sometimes higher rewards to capital and entrepreneurship reflect genuine value creation under new scarcity conditions. “Wealth pump” blurs productive inequality and extractive inequality.

4. He treats inequality as a stress indicator too quickly.

Inequality can correlate with instability, elite overproduction, and status competition. But rising inequality alone does not prove systemic pathology. You need to know whether the inequality came from value creation, global factor-price shifts, rent extraction, demographic change, or blocked opportunity.

5. His model has a tendency to absorb contrary evidence.

If median household incomes rise, the answer becomes “but relative wages fell.” If relative wages improve, one can shift to elite overproduction, fiscal distress, political fragmentation, or popular immiseration. That does not make the theory wrong, but it can make it hard to falsify in casual essay form.

So I would distinguish Turchin the model-builder from Turchin the polemicist.

The model-builder is asking useful questions about structural stress. The polemicist sometimes seems to choose framings that maximize alarm and narrative coherence, rather than carefully separating:

absolute living standards, relative standing, wage compensation, household income, factor shares, rent extraction, and global welfare.

That separation matters enormously.

A more value-adding version of his argument would say:

The US has become much richer, and median households have become materially better off. But since the late 1970s, gains have been distributed unevenly; returns rose for capital, skill, entrepreneurship, and asset ownership; some regions and workers suffered severe adjustment shocks; elite competition intensified; and institutions failed to maintain legitimacy across the whole system. These are real instability risks, but they are not evidence of broad middle-class immiseration.

That would preserve the good part of Turchin without the loaded part.

My blunt assessment: he is probably directionally right about structural stress, but rhetorically sloppy — or strategically imprecise — about economic welfare. The article would be stronger if it made your distinction explicit: inequality and relative-wage decline are not automatically pathologies. They become problems only when tied to rent-seeking, blocked mobility, deteriorating median welfare, or destructive political coordination.

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