The book “Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity” by Daron Acemoglu and Simon Johnson examines the historical impact of technology, particularly automation and AI, on economic inequality and labor dynamics. It argues that automation has led to a significant decline in labor’s share of national income and exacerbated inequality, with large tech companies amassing unprecedented power without substantial gains in productivity. The authors contend that AI will not lead to mass unemployment, but will further lower wages and diminish privacy, concentrating power among elites while sidelining workers. The book warns of a growing divide in society, fueled by a rush to automate and monitor individuals, reflecting a pessimistic outlook on America’s future.
| name | description | change | 10-year | driving-force | relevancy |
|---|---|---|---|---|---|
| Shift in Income Distribution | Labor’s share of national income dropped from 67-70% to under 60% by 2019. | Change from a labor-dominated income distribution to a more capital-centric one. | In ten years, we may see a further decline in labor’s income share, exacerbating inequality. | The rise of automation and AI technologies shifting value away from labor. | 4 |
| Concentration of Tech Power | Dominant tech companies control about one-fifth of US GDP with minimal manufacturing. | Shift from diverse economic contributors to a concentration of wealth among few tech giants. | In a decade, this concentration may lead to monopolistic practices and reduced innovation. | The increasing reliance on technology and data-driven business models. | 5 |
| Decreased Productivity Growth | Despite advancements in AI, productivity growth remains unimpressive since the 1980s. | A shift from expectations of productivity gains to stagnation or decline. | Ten years from now, the productivity gap may widen, affecting economic growth rates. | Failure of AI and digital technologies to deliver on their productivity promises. | 5 |
| AI and Job Displacement | AI technologies are biased against workers, leading to wage decreases and job losses. | From a labor-friendly environment to one where AI diminishes worker demand and wages. | In the next decade, job markets may shift significantly, with many roles automated. | The push for efficiency and cost-cutting through automation technologies. | 5 |
| Erosion of Privacy | AI’s reliance on massive data collection worsens individual privacy concerns. | A shift from individual privacy to increased surveillance and data commodification. | In ten years, personal data may be even more exploited, leading to a surveillance state. | The tech industry’s focus on data-driven AI solutions over privacy protections. | 4 |
| Emergence of a Two-Tier Society | Society is becoming increasingly unequal, with a divide between tech elites and the general populace. | From a more equitable society to one starkly divided by wealth and access to technology. | In a decade, the disparity may lead to social unrest and calls for reform. | The accumulation of wealth and power among tech leaders at the expense of workers. | 5 |
| AI Illusion Intensification | The perceived potential of AI is outpacing its actual productivity benefits. | Shift from hype and optimism about AI to disillusionment and criticism. | In ten years, the gap between AI’s promises and reality may lead to backlash against technology. | The disconnect between technological advancement and tangible societal benefits. | 4 |
| name | description | relevancy |
|---|---|---|
| Concentration of Power | The potential for AI to exacerbate power imbalances, particularly among big tech companies, limiting competition and innovation. | 5 |
| Inequality Growth | Increasing automation and AI may lead to greater economic inequality as high-income tech elites benefit at the expense of lower-income workers. | 5 |
| Job Displacement Without Productivity Gains | The risk that AI and automation will reduce job demand and wages without delivering significant productivity improvements. | 4 |
| Erosion of Privacy | The use of vast amounts of data by AI systems raises concerns about privacy violations and data exploitation. | 5 |
| Public Disempowerment | Leaders utilizing AI may feel less accountable to the public, viewing them as incapable of understanding their own needs. | 4 |
| Orwellian Monitoring | The increasing capability of AI to monitor and control society may lead to a dystopian future. | 4 |
| AI Illusion | The narrative that AI will solve major societal problems may lead to neglect of deeper structural issues in the economy. | 5 |
| Technological Dystopia | The potential emergence of a two-tier society driven by technology and AI, creating a divide between tech elites and the general population. | 5 |
| name | description | relevancy |
|---|---|---|
| Concentration of Power among Tech Giants | The rise of dominant tech companies amplifies economic inequality and reduces competition, impacting labor markets and wealth distribution. | 5 |
| Automation and Job Displacement | AI and automation technologies are increasingly replacing jobs in higher-value sectors, leading to wage suppression and limited employment opportunities. | 5 |
| Data Privacy Erosion | The focus on data collection for AI development results in diminished privacy for individuals, raising concerns about surveillance and autonomy. | 4 |
| AI Illusion and Productivity Stagnation | Despite promises, AI has not significantly increased productivity; instead, it contributes to a false narrative of progress while exacerbating inequality. | 5 |
| Two-Tiered Societal Structure | The disparity between the wealthy elite and regular workers is growing, with tech leaders perceiving the latter as replaceable and less valuable. | 5 |
| Disempowerment of Workers | The automation trend is leading to a disempowerment of the workforce, as tech advancements prioritize efficiency over human labor. | 5 |
| Regulatory Calls and Industry Self-Regulation | Increasing discussions about the need for regulation in AI and tech industries as public concern over its impacts grows. | 4 |
| description | relevancy | src |
|---|---|---|
| AI technologies are evolving to automate tasks and impact productivity, raising concerns about job displacement and inequality. | 5 | 997c962feb825d066ca4dc6e4742e8a9 |
| Automation is increasingly being applied in higher-value-added sectors, raising issues around job security and income distribution. | 4 | 997c962feb825d066ca4dc6e4742e8a9 |
| The collection and analysis of vast quantities of data are central to AI development, but raise privacy concerns. | 4 | 997c962feb825d066ca4dc6e4742e8a9 |
| The trend of household appliances and machines being connected to the cloud for extensive data collection is growing, intensifying privacy issues. | 3 | 997c962feb825d066ca4dc6e4742e8a9 |
| The integration of digital technologies in business practices has led to rising market power among tech elites and increased inequality. | 4 | 997c962feb825d066ca4dc6e4742e8a9 |
| name | description | relevancy |
|---|---|---|
| Economic Inequality from Automation | The impact of automation and AI on income distribution, leading to increased inequality between workers and capital owners. | 5 |
| Concentration of Power in Tech Giants | The growing market power of major tech companies, which may stifle innovation and exacerbate wealth disparity. | 5 |
| AI’s Limited Impact on Productivity | Despite advancements, AI and digital technologies may not significantly improve productivity, complicating economic growth. | 4 |
| Privacy Erosion through Data Utilization | The extensive data collection necessary for AI raises concerns about privacy and surveillance in society. | 5 |
| Societal Division due to AI Implementation | The potential for AI to deepen societal divides, creating a two-tiered society of tech elites and displaced workers. | 4 |
| Regulatory Challenges for AI and Tech Industries | Increasing calls for regulation and oversight in the tech industry amidst concerns about job displacement and inequality. | 4 |
| The ‘AI Illusion’ and Public Perception | The disconnect between public expectations of AI’s capabilities and its actual impact on work and productivity. | 3 |