MIT professor and co-author Daron Acemoglu suggests that economic prosperity comes from high-wage job creation.

Fiona Sydney

2019-05-19 19:31:00 Sun ET

MIT professor and co-author Daron Acemoglu suggests that economic prosperity comes from high-wage job creation. Progressive tax redistribution cannot achieve the same economic gains that would result from more high-skill employment. The government should promote better tech advances and labor market institutions to empower workers through higher education systems. Also, the government should encourage firms to deploy better technology to boost real wage growth and labor productivity. The government can increase product market competition such that firms cannot charge monopoly prices without hiring more workers. Meanwhile, the current institutional architecture depresses U.S. private-sector wage growth (2.5% per annum from 1947 to 2000 and almost nil thereafter). In this negative light, the government should raise the U.S. tax-revenue-to-GDP ratio from 27% to the 35% OECD benchmark. The incremental fiscal intake can help ensure higher wages for tech-savvy high-skill workers.

Moreover, the government has to set clear rules with respect to tech market power, privacy, and content curation. Recent examples include the E.U. fines on Google for online search market dominance, Facebook-Cambridge-Analytica data breach, and Amazon premium user surveillance via Alexa-and-Echo artificial intelligence. These rules may entail plausible penalties on foreign interference in U.S. elections, privacy invasion, and the viral distribution of inappropriate content etc.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Artificial intelligence, 5G, and virtual reality can help transform global trade, finance, and technology.

Peter Prince

2021-05-20 10:30:00 Thursday ET

Artificial intelligence, 5G, and virtual reality can help transform global trade, finance, and technology.

Artificial intelligence, 5G, and virtual reality can help transform global trade, finance, and technology. Core trade technological advances and disruptive

+See More

State, society, and the narrow corridor to liberty

Joseph Corr

2023-09-28 08:26:00 Thursday ET

State, society, and the narrow corridor to liberty

Daron Acemoglu and James Robinson show a constant economic tussle between society and the state in the hot pursuit of liberty. Daron Acemoglu and James R

+See More

President Trump promises a great trade deal with China as Americans mull over mid-term elections.

Laura Hermes

2018-11-13 12:30:00 Tuesday ET

President Trump promises a great trade deal with China as Americans mull over mid-term elections.

President Trump promises a great trade deal with China as Americans mull over mid-term elections. President Trump wants to reach a trade accord with Chinese

+See More

President Trump imposes punitive tariffs on $60 billion Chinese imports in a brand-new trade war.

Laura Hermes

2018-03-25 08:39:00 Sunday ET

President Trump imposes punitive tariffs on $60 billion Chinese imports in a brand-new trade war.

President Trump imposes punitive tariffs on $60 billion Chinese imports in a brand-new trade war as China hits back with retaliatory tariffs on $3 billion U

+See More

Warren Buffett stock market investment principles

Daphne Basel

2020-02-05 10:28:00 Wednesday ET

Warren Buffett stock market investment principles

Our proprietary AYA fintech finbuzz essay shines light on the modern collection of business insights with executive annotations and personal reflections. Th

+See More

Scientific research trumps basic intuition and common sense.

Amy Hamilton

2019-08-30 11:35:00 Friday ET

Scientific research trumps basic intuition and common sense.

The conventional wisdom suggests that chameleons change their skin coloration to camouflage their presence for survival through Darwinian biological evoluti

+See More