Labor costs may have risen, but production costs have dropped faster, causing deflation in many instances. We had even stronger growth with almost no inflation. We had no growth and incredible inflation. Inflation can happen in dozens of ways, but rarely from wealth creation and growth. Stupid monetary policy creates inflation, however.
Growth is simply growth.
We are building bigger, better and faster mousetraps and reaping the rewards. The stock market represents public confidence in wealth creation. Intellectual value is often more important. Maybe if today's politicians held real jobs and actually used computers they'd understand the new economy. First, tax thresholds haven't changed since the 1993 increases.