The Great Decoupling
mckinsey.com
The Great Decoupling
But policy moves a bit slower than AI and, if income is abruptly severed from labor, there is a genuine fear that the chasm of inequality may quickly solidify.
On work, well, being and job extinction: https://jacobin.com/2025/09/artificial-intelligence-productivity-unemployment-well-being
Technological Advancements: o The rise of technology and automation increased productivity but also displaced certain types of labor, particularly in manufacturing.
o Capital investments in technology led to higher returns for investors and owners of capital.
kaustubhs • Shift_from_Capital_to_Labor
This process brought information to the forefront of the transformation of social, economic, and political life. A new demand for skilled workers emerged, with automation replacing labour in routine tasks. This promoted job polarisation and wage inequalities among groups with differing levels of skill and educational attainment.
L'Atelier • Economic opportunities for our avatars | Social Mobility in the Digital Age | L'Atelier
Overall US demand for labor has remained strong through multiple waves of automation, with new activities having been created faster than technology has replaced existing ones.12 Yet AI’s broad reach raises concern that this time may be different. The outcome will depend on whether new demand, industries, and roles emerge to absorb displaced... See more