Tuesday, November 8, 2011

The Jobless Economy

Martin Ford from Project Syndicate writes how structural unemployment is increasing and is inevitable from automation and new technologies. He mentions the fact that technology is increasingly improving, and how it will "exceed the capability of human workers in many routine job categories." One such example is agriculture. In the 19th century, about two-thirds of the work force participated in the agriculture industry; now it's around 2-3%.
Ford goes on, however, that the structural unemployment will eventually reach a "tipping point". Automation will drive prices down, increase demand of goods and services from consumers, which will give the money to businesses to boost employment. New and current industries will become more efficient in the long run and thus lower the structural unemployment rate.
http://www.project-syndicate.org/commentary/mford1/English

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