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The first graph in the second cited article says something:

This graph is very reminiscent to this often iterated:

The new graph shows that a clear gap started to open not with Reagan and Thatcher, but some 8 years earlier.

I bet that ideology was a leading rather than reacting narrative. As was stressed by Henry George, the classical economics accepted that workers' pay is not related to the value of their labor but to their bargaining choices. In other words, productivity gains are not supposed to be correlated to labor wages. Most of the workers (footballers and some other skills excluded) mostly get only what they would settle for. We see this interpretation getting the working status after the 1970s.

by das monde on Fri Aug 24th, 2012 at 05:33:21 AM EST
This is nicely put:
In modern history the shift of social wealth from labor to the ruling class began in earnest with Democrat Jimmy Carter in the White House in the late-1970s. A series of politically motivated oil embargoes quite predictably led the oil-dependent manufacturing economy to rising prices and lower output--stagflation. Through arcane theory still practiced by the American economic mainstream, the cause--the oil embargoes with attendant rising prices and reduced output, was converted to effect, as if from over-regulation and Keynesian management of the capitalist economy. The proposed solutions derived from these (implausible) economic theories were de-regulation, the destruction of labor's bargaining power and the return to (long discredited) `market' solutions to policy issues.
by das monde on Wed Aug 29th, 2012 at 06:35:12 AM EST
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