Inflation Denialism by Yglesias

Unit labor costs are basically wages divided productivity. It's not the price of labor, in other words, but the price of labor output. If productivity is rising faster than wages, then even if wages themselves are rising unit labor costs are falling. Conversely, if wages rise faster than productivity than unit labor costs are going up. Clearly there's nothing wrong with a little increase in unit labor costs here or there. But over the long term, growth in unit labor costs needs to be constrained or else it becomes impossible to employ anyone. And you can see that in the seventies it's not just that gasoline got more expensive, we had an anomalous spate of high unit labor cost growth. That was inflation and it's what led to the regime change that's governed for the past thirty years.

The Need for a Regime Change by Yglesias

I liked that during the 2008 campaign Obama said that productivity had long risen above wages (throughout the Clinton years) and that it was unfair.