Technological progress benefits are shaped by power distribution in society.
Rules and regulations are needed to ensure technology benefits workers and society.
Caution should be exercised when placing too much trust and power in individual leaders shaping technology and society.
Deep dives
Technology and Productivity in Capitalism
In this podcast episode, economists Bethany McLean and Luigi Zingales discuss the relationship between technology, productivity, and capitalism. They explore the view that technological advancements have historically led to increased standards of living for workers and capital owners. However, they also question the assumption that technology always benefits everyone, highlighting instances where workers have not benefited from major technological improvements. They discuss how the nature of technology and the rules governing management-worker relationships play a role in determining how technology affects workers. They also examine the role of luck and contingent factors in shaping technological progress and its impact on society.Overall, the episode prompts a critical examination of the connection between technology and capitalism, challenging the notion that technological progress is always inherently positive for society.
The Role of Government and Democratic Decision Making
The conversation touches on the role of government in shaping technology and innovation. They discuss the need for regulation to control the use of data, ensure technology benefits workers and citizens, and encourage diversity in technology development. They also acknowledge the challenges of finding a balance between technocratic and democratic decision making, as well as the potential risks of excessive government intervention. The discussion raises questions about how to ensure technology is used in ways that empower workers and society, without stifling innovation or resulting in unintended consequences.
The Danger of Techno-Utopia and Great-Man Narratives
The podcast examines the danger of techno-utopian narratives and the belief in great men shaping technology and society. They discuss the case of Ferdinand de Lesseps, who successfully built the Suez Canal but failed in his attempts to build the Panama Canal. This example challenges the notion that visionary leaders always have the right answers and can steer technology towards positive outcomes. The conversation raises caution against placing too much trust and power in individual leaders and highlights the importance of questioning and critically examining technological progress and its implications.
Concerns about Inequality, Worker Empowerment, and Capitalism
The discussion delves into concerns about inequality and worker empowerment within the context of capitalism. They explore the idea that technological progress, while benefiting society as a whole, does not always lead to fair distribution of its benefits. They emphasize the need for policies that prioritize worker well-being and the redistribution of wealth. The podcast also touches on the role of capital and labor taxation, challenging the conventional economic wisdom and suggesting the need for more balanced tax policies.
Contemplating the Intersection of Capitalism and Technology
The episode invites listeners to contemplate the complex relationship between capitalism and technology. It prompts us to question the assumptions that technological progress is always beneficial, to critically examine the distribution of its benefits, and to explore ways in which technology can be harnessed to empower workers and achieve more equitable outcomes. The conversation emphasizes the importance of considering the role of government, democratic decision making, and ethical considerations in shaping the direction and impact of technological advancements within a capitalist system.
In his new book, "Power and Progress: Our 1000-Year Struggle Over Technology and Prosperity", renowned MIT Professor of Economics Daron Acemoglu (with co-author Simon Johnson) argues that the benefits from technological progress are shaped by the distribution of power in society.
In this episode, Acemoglu joins Bethany and Luigi to discuss the key challenges of ensuring that this progress benefits everyone, not just the wealthy and powerful. They discuss the rules, norms, and expectations around technology governance, the unintended consequences of AI development, and how the mismanagement of property rights, especially over data, can reinforce inequality and exploitation.
