The narrative that globalization hollowed out the American middle class has been a topic of intense debate. A recent analysis challenges this notion, arguing that the timing of wage stagnation in the U.S. does not align with the era of globalization. John Lettieri of the Economic Innovation Group highlights that wage stagnation occurred primarily between 1973 and 1994, predating the North American Free Trade Agreement (NAFTA) in 1994. In fact, wages began to grow again shortly after NAFTA’s implementation. However, the story is more nuanced. While NAFTA had minimal negative effects on specific industries, the ‘China Shock’ following China’s entry into the World Trade Organization (WTO) in 2001 had a more significant impact on American wages, particularly for the working class. Between 2003 and 2015, median wages flattened, coinciding with increased competition from China. The Great Recession further exacerbated wage stagnation post-2007. Despite these factors, the most prolonged period of wage stagnation occurred before globalization, from 1973 to 1994. This era was marked by multiple economic shocks, including oil crises, inflation, and shifts in global monetary policies. Theories explaining this stagnation include productivity slowdowns, financialization, the decline of unions, and inflation. However, none of these factors alone fully account for the 20-year stagnation. The productivity slowdown, which aligns closely with the stagnation period, remains a leading explanation, though its exact causes are still debated. Other factors, such as de-unionization and financialization, played partial roles but do not fully explain the phenomenon. Ultimately, the wage stagnation of 1973-1994 may have resulted from a combination of these factors, rather than a single cause. This complex interplay underscores the challenges of isolating economic trends and highlights the need for further research to understand this pivotal period in American economic history.