Ever since the 2008 economic collapse, I've been wondering if these Intertubes and electron harvesters might actually keep us from recovering from the recession. No, not because information technology cuts into productivity thanks to everyone's tweeting (although I could be reading Hugo en français right now). I worry most folks could be stuck in an economic slump because information technology increases per-worker productivity to the point where we just don't need as many people to produce as much stuff. What happens when we reach a point when we have, say, 200,000,000 willing and able-bodied workers, but we only need the labor of 160,000,000 people?
Robert Reich is worrying down the same path. He says increased productivity is great, but only we distribute productivity gains fairly:
So while the productivity revolution is indubitably good, the task ahead is to figure out how to distribute more of its gains to more of our people.
One possibility: higher taxes on the rich that go into wage subsidies for lower-income workers, combined with job sharing.
We also need better schools (from early-childhood through young adulthood, followed by systems of lifelong learning) so everyone has a fair shot at a larger share of the gains.
Finally, the benefits of the productivity revolution should be turned into more abundant public goods &ndash cleaner air and water, better parks and recreation, improved public health, and better public transit [Robert Reich, "Bye Bye American Pie: The Challenge of the Productivity Revolution," blog, 2012.03.01].
Reich says that right-wingers get it all wrong. They think the government is dragging the economy down by claiming too big a chunk of the national wealth and spending more than we can afford on public goods. The real problem, says Reich, is that Mitt Romney's corporate pals are hoarding wealth and leaving the middle class without the honest purchasing power (instead of credit cards and home equity loans) to spend the economy back to full strength.
Get it? The pie is growing again but most people aren't getting much of a slice. That's bad even for those getting the biggest pieces. They'd do better with smaller slices of a pie that grew much faster [Reich, 2012.03.01].
Even the economy has to be democratic. Even when one person can do the work of two or twelve or two hundred, we must still ensure that everyone can participate as a producer and a consumer.
I have not read it but if I had the Communist Manifesto would surely read very similar to what Robert Reich writes here Cory. Take from the masses and distibute has never worked well anywhere in history.
Charlie: you inherited everything you have, right?
Exactly, Charlie. Taking from the masses doesn't work. That's exactly what the corporate honchos are doing from their workers and the middle class. Reich doesn't prescribe taking from the masses; he prescribes giving the gains of productivity back to them. Let's hear it for the Job Do-ers!