Thanks to Mark Thoma I have read a very interesting piece by David Altig on technological change and inequality. Altig weighs in the debate that Bob Gordon started a few months on the possible slowdown of trend productivity in the next decades. Bob’s argument is known, and makes sense: no current innovation, not even the fanciest ones, seems to have the potential to change our life as did railroads, jet planes, or, even more importantly, running water! But it is undeniable that he ventured in uncharted lands (innovation, future inventions, the future), and I am in the end incapable to take sides on the issue. I am just very satisfied that Bob’s argument is taken seriously, even by those opposing it.
I found interesting Altig’s remark that “game-changing technologies have, in history, been initially associated with falling capital prices, rising inequality, and falling productivity“. He ends asking whether these trends, that we are nowadays observing, could be the indicator of yet another major “game changer”. But this is also not what I want to point out. Read More