"Rising inequality means that fewer people have spending power, creating incentives that sharpen the affordability crisis for everybody else. But there are remedies that don't require draconian taxes and that are proven to work-at their core is ownership."
"During such periods, finance operates in a casino-like economy, financiers and high-tech barons capture most of the gains, inequality spikes, and populism rises. The Gilded Age looked like this. The Roaring Twenties looked like this."
"Every installation phase has eventually given way to a 'golden age'-a deployment phase in which the new technologies spread widely, productivity and wages finally move together, and prosperity broadens."
"With all the talk of AI widening income inequality, we should be spending at least as much energy and intellect on what conditions are necessary for a golden age to follow."
Rising inequality diminishes spending power, exacerbating the affordability crisis. Worker productivity has surged, while real wages lag significantly. The wealth from technological advancements, particularly AI, tends to benefit owners rather than workers. Historical patterns show that installation phases of technological revolutions lead to increased inequality and populism. However, these phases can transition into golden ages where productivity and wages align, fostering broader prosperity. To achieve this, it is crucial to redirect financial resources from speculative activities to productive investments.
Read at Fast Company
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