Education in the Second Machine Age
Until the 1980s, about 70% of income went to labor income and 30% to capital income. But, since then, the share of income going to labor has declined in all rich countries, and research indicates that half of this decline is the result of cheaper information technology – allowing firms to replace workers with computers.
MUNICH – Artificial intelligence, once confined to the realm of science fiction, is changing our lives. Cars are driving themselves. Drones are being programmed to deliver packages. Computers are learning to diagnose diseases. In a recent book, the economists Erik Brynjolfsson and Andrew McAfee describe these recent advances as examples of the beginning of what they call “the second machine age.”
The very name – the first machine age was the Industrial Revolution – suggests an epochal shift. And, indeed, if the predictions are to be believed, these technological advances could have profound implications for the way we live.
One common forecast is that as ever-more advanced robots substitute workers, the cost of labor will become less important, and manufacturing will move back to rich countries. Another is that increasingly intelligent machines will reduce the demand for advanced skills, and that the economic advantage of having these skills will decline as a result.