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MENTAL MODEL · M5087

Engels' Pause

Engels' Pause
BusinessHigh supportEconomics
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

During the early Industrial Revolution, although labor productivity increased significantly due to new technologies, workers' real wages stagnated for a long period (about 40 years). This phenomenon of 'pain first, gains later' is called Engels' Pause, reflecting the lag in the distribution of technological dividends.

SCAFFOLDING EFFECT

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Reduce cognitive load

A social buffer period during technological change. Under the impact of new technologies such as AI and automation, do not assume that 'as productivity rises, everyone will naturally benefit.' Society needs proactive policy interventions (such as retraining and tax adjustments) to shorten this 'pause' and avoid social fragmentation.

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Engels' Pause: a phase during the early Industrial Revolution when wages stagnated or even declined for a long time while productivity and profits rose, because capital bias and technological shocks prevented workers from benefiting immediately, with wages only recovering later through institutional adjustments.

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Source support: Explicit

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    en.wikipedia.orghttps://en.wikipedia.org/wiki/Engels%27_pauseZH · Explicit
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