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+ - Nobel Prize-winning economist on Rise of the Robots->

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Paul Fernhout
Paul Fernhout writes "Economist Paul Krugman is finally starting to see the economic implications of continuing automation. He wrote "Robots mean that labor costs don't matter much, so you might as well locate in advanced countries with large markets and good infrastructure... On the other hand, it's not good news for workers! This is an old concern in economics; it’s "capital-biased technological change", which tends to shift the distribution of income away from workers to the owners of capital. ... If this is the wave of the future, it makes nonsense of just about all the conventional wisdom on reducing inequality. Better education won’t do much to reduce inequality if the big rewards simply go to those with the most assets. Creating an "opportunity society", or whatever it is the likes of Paul Ryan etc. are selling this week, won't do much if the most important asset you can have in life is, well, lots of assets inherited from your parents. And so on. I think our eyes have been averted from the capital/labor dimension of inequality, for several reasons. It didn't seem crucial back in the 1990s, and not enough people (me included!) have looked up to notice that things have changed. It has echoes of old-fashioned Marxism — which shouldn't be a reason to ignore facts, but too often is. And it has really uncomfortable implications. But I think we’d better start paying attention to those implications."

Maybe time to start discussing a basic income? Or perhaps we should consider some mix of improvements to technology-empowered subsistence, gift, exchange, and planned economic systems?"

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Nobel Prize-winning economist on Rise of the Robots

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