Technological advances have replaced human labor and brought convenience, but they are also increasing economic inequality, stagnating incomes for the middle class, and threatening social balance. True abundance for all requires a direction in which the benefits of technology are equitably distributed and social inequalities are addressed.
This is the age of abundance. Industries that have made great strides since the Industrial Revolution are once again taking a giant leap forward thanks to advances in digitized technology. Technologies we used to think of as science fiction are becoming a reality. Self-driving cars that don’t require a human driver have already been developed, AI assistants such as Siri are playing an important role in our daily lives, and warehouses are now filled with sophisticated machines that handle logistics instead of people manually carrying goods. These changes are making our lives more convenient and efficient, and their impact is felt in every aspect of our lives.
Instead of looking at each technology in isolation, we can also look at the big picture, such as economic indicators, to see how much technological advances have changed our lives. Labor productivity is growing faster and faster over time, with workers producing more in less time. GDP is growing every year, and so are the intangible assets that aren’t included in GDP. Intellectual property, organizational capital, user-generated content, human capital, and more continue to expand both quantitatively and qualitatively. There’s no question that technological advances are enriching our lives.
However, the authors of The Second Machine Age point out the problems that lie beneath the benefits of these technological advances. While it’s true that technological advances have led to a surge in productivity, they are also replacing human labor and making workers less and less valuable. Technology has essentially evolved to do human work more efficiently, to the point where it threatens the very existence of human jobs. This is because technology is inevitably becoming a ‘replacement’, especially with the development of artificial intelligence (AI), which is reducing the role of humans as machines are increasingly taking over not just repetitive tasks but also those that require professional judgment. Experts predict that by 2045, AI will surpass human intelligence.
The changes brought about by technological advancements don’t just affect workers’ jobs; in fact, technology is having a profound impact on the very fabric and culture of society. For example, AI-powered recommendation algorithms are influencing the information and content we encounter every day, changing the way people interact with each other. These changes have also profoundly altered the way we consume information, meaning that we are now more likely to be exposed to information that is curated by certain technologies rather than circulating based on individual choice. This can lead to people focusing on their own preferences and less opportunity for new perspectives, leading to a reduction in social diversity.
Even now, technological advances are threatening human affluence. The wages of middle-wage workers, often referred to as the middle class, have barely increased in recent decades, while the incomes of those in the top 1 percent have risen dramatically. The few designers and engineers who develop technologies that take over human jobs-or, more accurately, do them better-become billionaires, while many people who used to work in those jobs become unemployed because their skills are no longer competitive. Differences in education levels create differences in demand, and the gap in wages is widening. This skill-biased technological change is increasing income inequality, and the wealth gap is widening.
Technology has also expanded choice for consumers, who are now able to get the best deal with just one choice. Whereas in the past, a laborer who could do 80 percent of the work was paid 80 percent of the wage due to limited supply in a competitive market, only the best technology is selected, creating a “winner-take-all” market. The middle class is gradually losing ground as the benefits of technological advancement are concentrated in the hands of a select few, rather than being evenly distributed across society.
“The development of androids frees us from drudgery and monotony,” Andrew McAfee said in his talk. If technology can free humans from menial labor, the time spent on menial labor can be used for creative and innovative work. Things like creators and innovators coming up with better ideas and having productive discussions for the betterment of society. In other words, advances in technology can be a tool that opens up endless possibilities for human social progress by giving humans the opportunity to “focus.
However, as we saw with the Luddite movement, the introduction of new machines can also create unemployment anxiety for existing workers. Just as factory workers feared their jobs would be taken over by machines, today, the combination of big data and artificial intelligence is threatening more and more occupations. In particular, the development of artificial intelligence response systems has led to predictions that human workers will become increasingly unnecessary, even in areas such as counseling services. While some are optimistic that new jobs will emerge with the advent of new technologies, the reality is that there are not as many new jobs as there are jobs being replaced by technology.
The benefits of technological advancement will be the privilege of the few if overall incomes rise, but the benefits are concentrated in certain classes, and the lives of the middle and lower classes are not improved. As the gap continues to widen, movement between classes becomes more difficult, and economic inequality is more likely to lead to political inequality. A structure that only serves the interests of a small elite can never be stable, and technological advancements are unlikely to lead to true happiness for humanity when the social balance is out of whack.
In conclusion, technological advancement has laid the foundation for human prosperity and affluence, but it can no longer guarantee human happiness on its own. I am not advocating that we stop technological advancement, but I am emphasizing that we should not be optimistic about the future based on economic indicators alone, but rather face the social issues that exist behind them, and strive to build a stable society by eliminating inequality and equalizing opportunities. Only then will we be able to create a healthy society where everyone can enjoy the true benefits of technological advancement.
