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For the first time since the 1960s, U.S. productivity has been growing at an annual rate above 2.5 percent. As numbers go, this may not seem spectacular, but it has enabled the economy to sustain a very low level of unemployment--less than 5 percent in each of the past three years--while holding retail price inflation to about 2 percent a year. The late stages of most business cycles put irresistible pressure on employers to raise wages, which ordinarily leads to increased prices and in turn acts to slow or stop the expansion. But in the present circumstances, employers can raise wages without upping prices because of increased productivity.
According to the President's Council of Economic Advisers, about half of the increase in productivity since 1995 is explained by increased capital equipment--particularly computers and software--plus increased productivity in the computer-manufacturing industry. The remaining half of the productivity increase may reflect new efficiencies from Internet use by business and the normally greater efficiency of employees during periods of high demand.
The better educated benefited the most from the rise in productivity. Average hourly earnings in private, nonagricultural business increased in real terms by about 16 percent during the past 40 years, but professionals did better: physicians, for example, enjoyed an increase in real earnings of 33 percent in the same period. One way of looking at the benefits of rising productivity is to compare various family income groups. The top 5 percent of families had an increase in income of 129 percent in real terms from 1960 to 1998, while the middle fifth had an increase of 54 percent and the bottom fifth only 38 percent. Family income went up not only because productivity was greater for other reasons, such as the increasing number of wives taking jobs outside the home. The average real income of working Americans, as the chart shows, increased beginning in 1995--undoubtedly made possible by the spurt in productivity over the same period. [emphasis added]

Source: Scientific American

That's very good info but it does neglect an inescapable yet never discussed facet of this whole debate and that is the explosion of debt at all levels since free trade became a front and center issue. I've been in the com'l/military electronics business since the early 80's and that's about the time frame I recall major concerns being expressed about the path we were embarking on at that time. (I'm sure the debate started much sooner but I do recall fierce discussions about Asian penetration at that time).

Here's the point....according to the Federal Reserve's own figures, since the early 80's corporate debt has gone from a little over 1 trillion to approx. 5 trillion in about 20 years....that's five-fold increase. What's more household debt went from a shade under 2T to almost 10T in the same time frame (5X). Also, fedgov debt went from a little over 1 trillion in '83 to the current 7 trillion they're willing to publicize and the over 40 TRILLION in "unfunded liabilites" that they're somewhat reticent to discuss....anyone heard any discussions on this fact during the debates? (I think not).

Of course there are numerous reasons for the dramatic increase in those numbers but it's undeniable that if free trade policies had delivered the wealth creating possibilities we were all left to believe would be created, those levels of debt would not be even close to what we've witnessed. It doesn't take a rocket scientist or even a free trade cheerleader to figure out that the explosion of debt has masked the debillitating effects of a flawed policy that will wreak havoc on future generations of Americans....and all the name calling and swarmy remarks cannot change that UNDENIABLE FACT!