I wrote about this effect in my economics thesis in 1965 and the bottom is that you have to look at the distribution of IQ/Education and the shift has been away from the jobs in the average range of IQ/Education into the upper ranges i.e. from labor to tech jobs. What this means as the shift continues is very simple there will be fewer and fewer people ABLE to do the jobs that are created.
From Wolf Street, by Wolf Richter
But this isn’t the industrial revolution.
How many jobs do robots – whether mechanical robots or software – destroy? Do these destroyed jobs get replaced by the Great American Economy with better jobs? That’s the big discussion these days.
The answers have been soothing. Economists cite the industrial revolution. At the time, most humans replaced by machines found better paid, more productive, less back-breaking jobs. Productivity soared, and society overall, after some big dislocations, came out ahead. The same principle applies today, the soothsayers coo.
But this isn’t the industrial revolution. These days, robots and algorithms are everywhere, replacing not just manufacturing jobs but all kinds jobs in air-conditioned offices that paid big salaries and fat bonuses.
Just today, BlackRock announced a plan to consolidate $30 billion of their actively managed mutual fund activities with funds that are managed by algorithms and quantitative…
View original post 860 more words