Home » Machine Economy » Programs are going to nudge us away from being average

Programs are going to nudge us away from being average

Having chronicled the US’s economic vulnerability in The Great Stagnation, Tyler Cowen, an economist at George Mason University in Virginia, says we have entered the age of “hypermeritocracy,” in which the top 10 to 15 per cent of Americans are “extremely wealthy” and lead “fantastically comfortable lives” and the rest work in “stupid and frustrating” jobs for falling or stagnant wages.

These trends are clearly evident today. He writes that 60 per cent of the jobs lost during the recession were mid-wage jobs, while 73 per cent of the jobs created were for workers on $13.52 (£8.36) an hour or less. In the longer term, intelligent computers will further dampen demand for mid-wage jobs and only those with the ability to work with intelligent machines, or whose skills are irreplaceable, will benefit.

Free online education – something that Cowen is already pioneering with his online economics courses at the Marginal Revolution University – will offer opportunities to those from deprived backgrounds to join the new elite, and so the future will be both “more meritocratic and more unfair.”

“The point is that this world will be confusing and it will be disorientating . . .” Except for those who work closely with machines and recognize the value of programs nudging us to make better choices…


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: