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Daron Acemoglu on Innovation and Shared Prosperity

EconTalk

The Importance of Human Knowledge in Manufacturing

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The labor market, the competitive process shouldn't pay this person a high wage. That's automation. And there shouldn't be any presumption that just automation is necessarily going to lead to much higher wages. But second, that we don't need to do just automation. We can create different future factories where humans have much greater contributions in terms of design maintenance, flexibility, social skills, creativity. If we do that, then we're going to increase wages.

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