“The lamenters don’t seem to understand that increased productivity in one industry frees up resources and laborers for other industries, and, since increased productivity means increased real wages, demand for goods and services will increase as well.”
This is a classical theory based mostly on the history of the earlier industrial revolution. It is in error with respect to economic history since the 1990s, and particularly since the “technological” revolution with its dawn at that time.
While corporations have been registering regular productivity gains, those gains have not, since 1980, registered any similar growth in wages, or even total compensation. Neither has that productivity growth stimulated an equal level of job creation. Profits yes, wages and jobs, no. Why? Automated devices and automation hardware and software do not get wages, nor are they counted as “job holders”.
Also, the “creation of new jobs”, as was seen during the onset of electrification, telecommunications, autos and commercial aircraft HAS NOT OCCURRED during the technology revolution in a manner of creating more new jobs than jobs lost.
No. This time, the classic view of the affects of ANY MANNER of productivity has not happened with the technological revolution.
Yes it - technology - does create all kinds of new work, and new jobs, but it has been at a much slower pace and volume than the jobs automation and computerization is doing away with.
“While corporations have been registering regular productivity gains, those gains have not, since 1980, registered any similar growth in wages, or even total compensation.”
Looking at only wages is looking at only one side of the coin. The other side is what you can buy today with those wages.
For example, today you can buy a magical device that you can hold in your hand for $100 that in 1980 didn’t exist and if it did you would need a big suitcase to carry it in and would have cost 100 grand. Another example is clothes. I’m constantly amazed at how unbelievably inexpensive they are today.
“Also, the “creation of new jobs”, as was seen during the onset of electrification, telecommunications, autos and commercial aircraft HAS NOT OCCURRED during the technology revolution in a manner of creating more new jobs than jobs lost.”
“Yes it - technology - does create all kinds of new work, and new jobs, but it has been at a much slower pace and volume than the jobs automation and computerization is doing away with.”
The tens of millions that hold those jobs in China, Korea, Taiwan, Japan and here, would disagree with you.