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Robots are shifting income from workers to owners | Axios

Robots are shifting income from workers to owners | Axios

In the 19th century, it took six decades after the Luddites for the wages of textile workers to recover from the advent of weaving machines. We are in the midst of another such gap now, according to David Autor, a pioneering labor economist at MIT.

What’s happening now: Machines are creating more wealth, but workers are not getting their usual cut of the pie, Autor told Axios.

Between the lines: This partly explains why American wages have been largely stagnant despite one of the tightest job markets in decades. And no one knows how long the gap will last — when workers displaced by the new automation revolution will find employment at gainful wages.

The chronology: Blue-collar misery goes back to the 1980s, when such workers began to suffer job, wage and benefit cuts, Autor said. But in the late 1990s or early 2000s, they were hit by a new phenomenon: the divvying up of the total economic pie — steady for decades — suddenly changed, and labor’s share dropped, according to a new paper by Autor and co-author Anna Salomons.

Source: Robots are shifting income from workers to owners | Axios