Tim Harford – the Undercover Economist
One of the problems with predicting the future is working out when it’s going to happen. That’s not quite as silly as it sounds: there is an easy assumption that the impact of change follows closely on the change itself, but that assumption is often wrong. That in turn can lead to the equally wrong assumption that because there has been limited impact in the short term, the impact will be equally limited in the long term. As Robert Solow famously put it in 1987, ‘You can see the computer age everywhere but in the productivity statistics.’ In this post, Tim Harford updates the thought from computers to robots. The robot takeover isn’t obviously consistent with high employment and low productivity growth, but that is what we can currently observe. The conclusion – and the resolution of the paradox is disarmingly simple, if rather frustrating: wait and see.