The Real Tech Boom Is Just Beginning

One of the issues the Federal Reserve has been grappling with since the last recession officially ended in mid-2009 is the lack of job creation. This is leading to new considerations about the fundamental structure of the economy and the ability of both public and private financial institutions to cause companies to create jobs. One idea being considered is that productivity increases are being achieved increasingly by companies employing automation as a means of reducing costs, especially human costs.

There is nothing new about this concept, as concerns about technology reducing more jobs for people than it creates has been a regular topic of discussion among economists since the beginning of the industrial revolution. In economics this idea is known as the compensation thesis. The thesis has held true since the industrial revolution, but the lack of job creation in the past three years, even as the Fed has maintained the lowest cost of capital in history, is beginning to cause economists to consider the idea that the thesis may finally be ending. (If that is indeed the case, it has truly profound implications for the economy and society.)...206 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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