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Innovation is a Social Issue by Martin Eiermann and Christoper Steiner

In economy, education, industrial processes, infrastructure, politics, technology on March 25, 2014 at 03:34

From: Algorithms and the Future of Work: Innovation is a Social Issue by Martin Eiermann and Christoper Steiner, The European Magazine, http://www.theeuropean-magazine.com

The European: You’re talking about a momentous shift in the labor market: The vast majority of workers fall into the category of mid-level employees. Unemployment is already high in the wake of the crisis – and if you’re correct in your predictions, we are looking at a technological shift with tremendous social consequences.
Steiner: Economists go back and forth on this question. Some argue that unemployment will remain high because of these trends, but others point out that people had very similar worries during the industrial revolution. The steam engine revolutionized production, but you still needed as many workers as before. The biggest trend for me is about stratification: The people who can handle algorithms and market themselves will do very well. They will displace people with less expertise and experience.

The European: Does that worry you?
Steiner: I’m more curious than worried. If you look at the top 500 American companies, corporate profits are near an all-time high, yet unemployment levels are higher than average as well. Many companies have not hired back the workers they laid off but have instead managed to increase productivity through software and automation. This isn’t just a future trend, it’s already happening.

Read the interview

Reposted with permission from: The European

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