If productivity was a problem, why accept paying less for a less capable worker?
Same thing as for counterfeiting/cheap china products. They are good enough for the price.
Increasing productivity does mean doing more, but doing more with less.
Sadly American people already accepts being exploited by having no rights, no benefits and no work life balance (in many cases).
The only thing that can get worse is to get less money.
But to be honest, I don't think people will get less money. This is politically hard to explain. Things will get more expensive.