The book “Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity” by Daron Acemoglu and Simon Johnson discusses the impact of technology, AI, and economic prosperity. It highlights the current issues surrounding artificial intelligence, automation, and the concentration of power among big tech companies. The book emphasizes the history of technology and its effects on income distribution, particularly the decline in labor’s share of national income. It also explores the impact of automation on inequality, with higher-value-added manufacturing sectors experiencing a surge in inequality. Additionally, the book raises concerns about the rise of dominant corporations, such as Google, Facebook, Apple, Amazon, and Microsoft, and their market power. The authors discuss the lack of productivity growth from these corporations and the potential impact of AI on employment. They argue that while AI may not create mass joblessness, it could further lower wages and reduce the demand for workers. The book also addresses the issue of data privacy and how AI amplifies the power of tech elites while diminishing privacy and worsening inequality. It warns about the growing two-tiered society, with big tycoons at the top and regular people at the bottom. Overall, the book provides a critical analysis of the current state of technology and its implications for society and the economy.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Review of “Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity” | Impact of AI and technology on prosperity | Increased concentration of power, inequality | Desire for automation and data collection |
| Automation and offshoring affecting income distribution | Shift in income distribution | Further decrease in labor share of income | Automation and offshoring |
| Rise of dominant corporations and their market power | Concentration of power among tech companies | Increased market power of dominant companies | Market dominance and lack of innovation |
| Lack of productivity growth despite technological advancements | Stagnation in productivity growth | Limited productivity growth | Inefficiency of digital technologies |
| AI’s impact on employment and wages | Lower wages for many people | Decreased demand for workers | Biased AI against workers |
| AI’s focus on data collection and privacy concerns | Diminished privacy and worsening inequality | Increased data collection and privacy loss | Emphasis on autonomy and data collection |
| AI empowering tech elites and disempowering workers | Growing power of tech elites | Increased power imbalance | Desire for wealth and control |
| Growing two-tiered society with tech leaders and regular people | Increased societal divide | Widening gap between tech leaders and others | Belief in genius and replacement of workers |