See, Republicans and corporatists will love this - they'll say, "See how much they're producing with fewer people? Obviously, they were slacking off before." Remember, Republicans believe they're entitled to cheap, disposable labor without any pesky legal rights or protections that may get in the way of their profits.

Kind of reminds me of that scene in "Schindler's List," where Ralph Fiennes as the camp commander shoots a very sick man who somehow did the impossible task he was ordered to perform.

"Why did you shoot him? He did what you asked," another guard says.

Fiennes replies, "Why didn't he work that hard for me all the time?"

Yes, welcome to America, where "Work Will Make You Free". (Or is it "You'll Work Almost for Free"?) Hey, at least they don't shoot us - those of us who still have jobs, I mean:

Feel like you’re working a lot harder these days, putting in longer hours for the same pay — or even less? The latest round of government data on worker productivity indicates that you probably are.

The Labor Department said Tuesday that the American work force produced, at an annual rate, 6.4 percent more of the goods they made and services they provided in the second quarter of this year compared to a year ago. At the same time, “unit labor costs” — the amount employers paid for all that extra work — fell by 5.8 percent. The jump in productivity was higher than expected; the cut in labor costs more than double expectations.

That is, despite the deep job cuts of the past year, workers who remain on the payroll are filling in and making up the work that had been done by their departed colleagues. In some cases, that extra work came with a smaller paycheck.

The higher worker output and lower labor costs have been good news for companies struggling through the worst recession since World War II. So far, some 70 percent of companies in the S&P 500 have turned in better-than-expected profits for the latest quarter.

You may have seen the charts showing how working people's wages stopped going up along with productivity gains:

Here is another chart of productivity gain and wages, from EPI's The wedges between productivity and median compensation growth:

This means the gains went ... somewhere else. See if you can guess who got them? (Hint: it's the 1%; this is one driver of the terrible income and wealth inequality.) This breakoff of wages from productivity growth is partly (largely?) the result of trade agreements that pit Americans against exploited workers in non-democracies. This weakened the bargaining power of unions, moved factories and industries out of the country, devastated entire regions of our country -- and gave the giant multinational corporations, Wall Street and the billionaires the leverage they needed...

Economist Dean Baker describes one effect of this in Minimum Wage: Who Decided Workers Should Fall Behind?

"If the minimum wage had risen in step with productivity growth [since 1968], it would be over $16.50 an hour today. That is higher than the hourly wages earned by 40 percent of men and half of women."

Baker is referring to this CEPR study: The Minimum Wage and Economic Growth.

40% Of Americans Now Make Less Than 1968 Minimum Wage

Read what Baker wrote again. The minimum wage would be $16.50 an hour -- $33,000 a year -- if it had kept up with the growth of productivity since 1968. To put the effect of this a different way, 40% of Americans now make less than the 1968 minimum wage, had the minimum wage kept pace with productivity gains.

To put this even another way, the average American's living standard would be much, much higher today if wages had not decoupled from productivity gains - with the gains all going to the 1% instead of being shared by We, the People. If wages had kept pace we wouldn't feel the terrible squeeze that everyone in the middle class is feeling. (Never mind what has happened to those below the middle class.)

This is one more way to understand the effect of income and wealth inequality on each of us. The 1%/99% thing is real. When you hear that the 6 Walmart heirs have more wealth than 1/3 (or more) of all Americans combined, it is real. When you hear that the people on the Forbes list of the 400 wealthiest Americans have more wealth than half of all Americans combined, it is real.

And the effects on the rest of us are real.

Is This Where The (Middle-Class) Money Went?

Now, here's another chart. This chart shows that financial-sector and non-financial-sector compensation used to rise together, but in the late 70's / early 80's they decoupled. Financial-sector compensation took off, while non-financial-sector compensation did not.

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