History tells us that in the long run, technology is a net creator of jobs. Is this time different?
Technology adoption can, and often does, cause significant short-term labor displacement, but history shows that in the longer run, it creates a multitude of new jobs and unleashes demand for existing ones, more than offsetting the number of jobs it destroys, even as it raises labor productivity (exhibit).
An examination of the historical record highlights several lessons. Here are five. 1. Employment in some sectors can decline sharply, but new jobs created elsewhere have absorbed those that have been displaced. All […]
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