Wednesday, February 22, 2017

The Economic Challenge of Our Era

With anti-immigration, anti-corporate sentiments rising across the Europe and the America, it is apparent that the liberal democracies in the west are experiencing many great challenges. Many a times the challenges identified are misrepresented as in they get conflated with the actual reasons. For example, much of the economic worry of the heartland America often attributed to globalization and immigration, although they are vital factors, when the effect of automation could be much larger. Here what I am trying to do: I will be reading resources that break down the net impact of immigration on local economy, the net impact of global trade for America, and the net impact on automation. My guess is that these studies will not conclusive or comprehensive enough considering the scope for such big studies. However, there remains unequivocally the challenge of the western liberal democracy, which is, what to do with the automation of jobs that will kill millions of jobs. With the jobs created by automation will outweigh the number of jobs take by automation? Or the net value created by automation far outweigh the combined contribution of the labor force laid off because of the automation? In that case, is there any way to distribute wealth gained from the productivity gain found from automation to the masses of people that were out of work?

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