To return to increasing real wages the US must solve many difficult social problems such as primary and secondary education, the deficit, medical costs, and a low rate of manufacturing innovation. If the US returns to a high rate of productivity advance, then the problem of automation and the income distribution will to some extent take care of itself. For example, if productivity advances 6%managers can simultaneously reduce the workweek 3%and increase wages 3%without increasing unit labor costs. Thus with a continuous rate of productivity advance, wages increase and the workweek decreases. More workers are employed for fewer hours.
However, a major problem with this scenario is the increasing cost of fringe benefits. Today, managers prefer to use overtime rather than hire new workers because the new workers must be paid fringe benefits. Also, managers prefer part time workers to full time workers because part timers do not get fringe benefits. To promote a smooth transfer to a shorter workweek, I personally believe the cost of all fringe benefits should be transferred to the individual.