Inequality: only the tip of the iceberg
As the economists Erik Brynjolfsson and Andrew McAfee have pointed out, “this new revolution could yield greater inequality, particularly in its potential to disrupt labor markets. As automation substitutes labor across the entire economy, the net displacement of workers by machines might exacerbate the gap between returns to capital and returns to labor.”
In this must read article from The Guardian: 4th Industrial Revolution brings promise and peril for humanity, Prof. Schwab compares “Detroit in 1990 with Silicon Valley in 2014. In 1990 the three biggest companies in Detroit had a market capitalisation of $36bn (£25bn), revenues of $250bn and 1.2 million employees. In 2014, the three biggest companies in Silicon Valley had a considerably higher market capitalisation ($1.09tn) generated roughly the same revenues ($247bn) but with about 10 times fewer employees (137,000).