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Technology creating economic inequality from "summary" of The Second Machine Age by Erik Brynjolfsson,Andrew Mcafee
Technology is having a major effect on the way the economy works, creating increasing inequality. Automation and artificial intelligence are replacing jobs, leading to a growing divide between those with the skills to thrive in this new environment and those left behind.- With the rapid growth of technology, economic inequality is increasing rapidly. This can be seen in societies all over the world whereby those with access to the latest technology have an edge over those without it.
- Technology has enabled people to quickly boost their wealth - either through businesses or investments in different areas such as stocks and property. These opportunities are not accessible to everyone and so the effect on the economy becomes starker and more noticeable.
- Technological advancement means that tasks which previously were done by humans can now be completed faster and more accurately, by machines. This has led to a decrease in the availability of labour jobs, particularly manual labour jobs, as they are no longer needed.
- The incredible computing power of modern technology also leaves few jobs now untouched by automated processes, from basic customer service interactions to making decisions in regulated areas such as medical diagnoses. This leads naturally to a widening of the gap between those able to use the technology and those less able.
- As globalisation increases, many everyday goods are now cheaper to produce abroad since wages are much lower outside the Western world. This affects wage levels locally and makes it even more difficult for low earners to find work at living rates of pay.
