There has been a disconnect between growth in the economy and growth in jobs and wages. While some of the money disconnect is attributable to corporate finance and tax policies, some of the disconnect may be attributable to supply and demand. Human population is growing. Duh. That also means the demand for human services is increasing and the supply of human workers is increasing. Technology allows higher productivity so the demand for human workers doesn’t rise as quickly as the demand for their services. Robots have increased productivity while decreasing costs, meeting some of the demand while filling some of the supply-side needs more cheaply. The effect may not be significant, yet; but it is measurable ~ 0.36% of GDP, which is about 10% of GDP growth. The human dichotomy is such that, while some people lose their jobs, the people that work with the robots make higher incomes. Robots may be contributing to income inequality.

“Robots Are Infiltrating The Growth Statistics” – Brookings

One thought on “Robots Account For Productivity

  1. Pingback: Data That Matters April 2015 | Pretending Not To Panic

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