Paul Krugman Acknowledges That Technology Causing Income Inequality is a Story That’s “Starting to Have Some Plausibility”

I take Krugman’s recent interest in this topic as a positive sign. The economic impact of rapid technological change on our economy may be beginning to bubble up to the point of mainstream awareness.

“It’s not the case that eras of technological progress are always periods when workers are doing better. The industrial revolution was not…

Technology has shifted in a way that really favors capital over labor. That makes it possible to replace people with machines.” —Krugman

Link to: Huffington Post Video Interview.

The considerably more radical Martin Ford has been critical of Krugman’s positions, saying:

“Does Paul Krugman really believe that it is possible to have a “society that grows ever richer” while a tiny number of robot owners hoover up more and more of total income and the jobless masses consume the output by running up their credit cards or cashing in their 401(k)s?”

The point is that the robot revolution is not just about income inequality. It will ultimately impact the sustainability of economic growth.” —Ford

Link to: Ford’s full blog post

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