Jobs/Employment and Growth
Why are incomes not picking up even when the unemployment rate is at its lowest and profits are rising?
The first phase of automation focussed on improving productivity. So skill requirement of workers goes up and hence their pay goes up.
In present phase of automation, the skill requirement of worker operating the equipment is going down and hence their pay is going down.
Thus, if you replace the spade with earth moving equipment, you need to pay the worker more for the higher skill requirement. But when you replace an expert barista with a coffee-maker machine then you need to pay less to the operator of that machine.
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