atans1

Two elephants in the room the CFE report misses

In Economy on 15/02/2017 at 4:32 am

Donald Low points out that people are history

has been a failure of governments to compensate the losers of globalisation and technological disruptions sufficiently. Not only has income inequality increased in most developed countries, but this has been accompanied by wage stagnation for average earners. Technology advances may have created new and better jobs, but they have also caused the disappearance of many jobs that required “middling” skills and earned middle wages—a phenomenon known as job polarisation.

https://www.facebook.com/notes/donald-low/cfe-report-could-have-included-long-term-macroeconomic-issues/1427286870638616

And that there’s nothing in the report about safety nets (rumour has it that recommendations on “stronger safety nets” were taken out because of the PAP’s dislike of “welfarism”):

the state would be called upon to engage in more aggressive fiscal redistribution and to provide stronger safety nets. In fact, such measures are not just a necessary response to higher inequality. They are also an important lubricant of economic restructuring and a complement for measures to promote competitiveness; they make pro-growth policies far more acceptable to workers.

The American experience shows that the middle class is being wiped out by the march of progress, something that will happen here whether or not S’poreans vote for the PAP.

ANOTHER VIEW
Self-driving truck technology for travel on interstate highways, based on artificial intelligence, is already technically feasible. Today, about five million drivers are employed in the industry. A 20 percent reduction in this work force over the next 15 years would equate to a million lost jobs.

How Efficiency Is Wiping Out the Middle Class

Trade and immigration became the boogeymen in the presidential election, but what’s really displacing workers is the advance of technology.

NYT Dealbook

 

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