Yahoo Finance, by Renato Capelj, Benzinga — November 1, 2019
Excerpt:
Robert Shiller, a Nobel Prize in Economics recipient and the Sterling Professor of Economics at Yale University, joined ARK Invest CEO Catherine Wood in a discussion this week about the embrace of disruptive technology in today’s narrative-driven economy at the Forbes 30 Under 30 Summit in Detroit.
Shiller: Narratives Resemble The Great Depression
A sort of fear bubble has emerged, with asset managers drawing upon indices, fixed income and private market assets for alpha, Shiller said.
“Hardly anyone remembers; right about 1929 — the peak of the stock market — people started to worry about technological unemployment,” said Shiller, referencing Stuart Chase’s book “Men and Machines.”
“[Chase] said, ‘we are now in a turning point in history. We are entering the power age … and we’re going to be seeing massive unemployment.'”
A Cause For Concern?
The uncertainty surrounding job security and technology is unsubstantiated, Wood said.
She pointed to a 2013 Oxford University paper that inaccurately concluded that 47% of American jobs would be axed by automation over the next decade.
Wood said she approached the study from a different perspective: productivity.
“We determined that by the year 2035, the United States would create $12 trillion more than it otherwise would have without automation. So, instead of being a $28-trillion economy, we’re going to be a $40-trillion economy.”
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