6min chapter

The Reith Lectures cover image

AI in the economy

The Reith Lectures

CHAPTER

The Effects of Technology on Employment

Automation can increase or decrease employment depending on circumstances. The economist james besson has called this the inverted u curve. As technology gresses in a given sector, first employment goes up, and then it goes down. Automation increases productivity so as a world we enjoy more goods and services for less work. But many middle class jobs disappearing with low wage, low security jobs being replaced by robots. And echelon will continue to shift in income share from labor to capital.

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