On Thursday, November 12, Jerome Powell, The Chair of the US's Central Bank, said in a conference with other central bank chairs that the economy that we are going recovering from is no more. In this recovery, we will transition into a new economy that is even more technology heavy. While in the long run this is good, as technology will raise our Total Factor Productivity, leading to a higher standard of living. In the short run, this transition has some growing pains; this transition causes disruption. This disruption is mostly felt among people with lower paying jobs, minorities, and women. These groups typically filled roles that are more face-to-face, and in the wake of a pandemic, these groups are being left behind, and will have to adapt to this more technology heavy economy in the long run. In the short run, these groups are unemployed and will need some assistance until they are able to pick up a new job. The Federal Reserve has pretty much done everything they can do, so now the US government needs to step up to help mitigate these pains.
https://www.cnn.com/2020/11/12/economy/economy-after-covid-powell/index.html
I think this is very insightful. I think as a country that is already technologically advanced we forget about the people we leave in the dust. The government will need to find a way to reeducate these people for jobs of the future.
ReplyDeleteI think this is a trend that continues to repeat itself throughout history as all technology continues to advance. This is not necessarily a problem, but an opportunity for growth; those whose skills have gone to the wayside are simply tasked with learning new, more marketable skills.
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