Comment by hash872

Fun fact, the US has always had some of the highest wages in the world- even dating back to colonial times before 1776. Adam Smith did a detailed accounting of them, going occupation-by-occupation and noting that American colonist wages were higher than on the British mainland. (I'm excited because I literally just read this last night. I would link if I could to the specific pages in my book).

I believe the standard explanation is that most of the colonists were British (already a high-wage country at the time), and you really had to pay skilled labor to get them to leave & settle on a new continent. Plus labor mobility between the proto-state governments of the time (Virginia, Massachusetts, etc.)