Friday, December 4, 2015

Jobs and Tech

This article presents other sides of the technology vs. jobs argument, but I believe that the forces of capitalism ensure that over the long term technology does cause decreased employment due to the fact that if tech is not productive it isn't used. It must be productive from an economic standpoint to survive, ie, it must make a return on the capital expenditure. This includes all of the costs of the technology; materials, labor, and intellectual input. Tech concentrates the... wealth of an industry. It is the few that own the tech, relatively, that reap the monetary gains. Monetary gain is the value of output minus the value of labor. The arguments against the net loss of long term employment caused by tech have been buttressed by the effects on inflation of increased productivity combined with wage pressures that has led to huge debt creation which has mitigated the immediate effects of job loss and wage pressures.
Automation is reducing the need for people in many jobs. Are we facing a future of stagnant income and worsening inequality?

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