In his latest column at the New York Times Paul Krugman leaps to the defense of technology:
The other day I found myself, as I often do, at a conference discussing lagging wages and soaring inequality. There was a lot of interesting discussion. But one thing that struck me was how many of the participants just assumed that robots are a big part of the problem — that machines are taking away the good jobs, or even jobs in general. For the most part this wasn’t even presented as a hypothesis, just as part of what everyone knows.
And this assumption has real implications for policy discussion. For example, a lot of the agitation for a universal basic income comes from the belief that jobs will become ever scarcer as the robot apocalypse overtakes the economy.
So it seems like a good idea to point out that in this case what everyone knows isn’t true. Predictions are hard, especially about the future, and maybe the robots really will come for all our jobs one of these days. But automation just isn’t a big part of the story of what happened to American workers over the past 40 years.
He makes the following points:
- Technological disruption, while a factor, is not accelerating.
- Our problem is that increasing productivity is not being matched by increases in wages.
- The minimum wage isn’t high enough.
- Union membership has declined.
There are a number of factors he fails to mention:
- We have experienced an enormous influx of minimum wage and sub-minimum wage workers over the last 40 years.
- We have brought a significant number of people with college educations into the country who are willing to work for less than most Americans are.
- Prices and wages in both health care and education have risen much faster than they have in other sectors of the economy and account for much more of your budget than they did 40 years ago.
- The financial sector is much bigger than it used to be, too.
- We have tolerated Chinese predation on American industries.
- Most Americans are paying a lot more in taxes than they did 40 years ago.
I think Dr. Krugman is confusing causes with effects. The minimum wage hasn’t grown and union membership has declined as a consequence of some of the points I’ve made.
Whatever the causes I think we should agree that much of what we have experienced is the consequence of policy and policies can be reversed.






