Enabling the same production with fewer workers (or, equivalently, greater production with the same number of workers) is the definition of a productivity increase, not something that constitutes a difference in kind from a normal productivity increase.
> Moreover, all this "increased productivity" still left wage stagnant for 40 years
Not in computing it didn't. Same job category pay rose in real terms over almost any window you choose in the last 50 years, and in most cases the distribution of jobs also moved over time from lower-paid to higher-paid categories within computing.
Also, even general real wages didn't really stagnate for 40 years, average (mean) wages dropped slowly for 20 — mid-70s to mid-90s, and mostly have slowly climbed since, crossing over about 30-ish years after the past peak, but the same effect isn't seen in median wages (though that also was low in the early 1980s and most of the 1990s, before mostly rising strongly) or median personal income (which, despite short drops around recessions, has been rising consistently strongly since the 1981 trough.)