Fact: Labor productivity has roughly doubled since 1970. However, real wages have not moved materially at all.
Yes, in nominal dollars they have, but not in real dollars.
Now you might say "but in 50 years 2% inflation is more than a double." You'd be right but that's immaterial.
The question is this: Who is supposed to get the fruits of productivity improvement?
The answer is this: You.
Because you're the one who produced it.
It is for this reason that I have always argued that the the 2% "inflation target" is blindingly abusive. As I pointed out in Leverage the natural state of all economies is in fact a mild deflation, typically about that same 2% or so. Why? Because as productivity increases, which is simply defined as doing more with less the average person should see their standard of living denoted in invariant metrics increase. That is, not denoted in "dollars", but rather in such metrics as "hours worked to buy lunch" or "hours worked to travel 100 miles by personal conveyance."
In this regard if you look at the data exactly zero of said productivity has gone to Joe over the last fifty years.
Well, one way is due to offshoring to China and elsewhere. If something would otherwise go to Joe send it overseas where Joe can't force you to give it to him and then he either takes the zero or loses his job entirely.
Neither of the political parties will address this and the tropes around "global supply chains" and "free trade is good" are legendary -- and, as demonstrated by the data, false.
Simply put if any of them were true it would almost-immediately result in those other workers in other lands demanding and getting the compensation you'd otherwise get. That in turn would prevent the offshoring unless there were compelling supply reasons to do it since it is always more expensive to ship something than produce it locally. Yes, some of the offshoring would have still happened -- but not nearly as much.
So what went wrong? Simply put: Slavery.
In other words the governments there do not care about what we consider reasonable labor laws. Not on safety, not on working conditions, not on protecting the workers from abusive employers and absolutely not on wages. As a result the natural pushback never happened and never will either, which means, since we either can't or won't compel other nations to impose said conditions, our only choice is to bring the labor back home.
Oh, you say we can't?
Of course we can, but if we do then we expose all the hidden inflation and also force that which was extracted from the American people by corporations through the exploitation of said slave labor back into the American market -- and American worker.
Thus while wages will rise in real terms (by a lot; roughly a double is due you) corporate profits will go down.
Now you know how to fix it; the question is will you force the politicians to do it.