Are the American people obsolete? Salon argues that because of globalisation and technology there is now a increased separation between capital and labour. The activities that generate wealth have both been outsourced to cheaper shores, and become more efficient because of technology. As a consequence the social contract in Western society between rich and poor – the rich provide the capital while the poor provide the labour – is breaking down. The rich still have capital, but they can now move the production of goods to the East, creating a shortage of jobs in the West.
While reading this article in The Economist, the section on rising inequality leapt out at me. The newspaper suggested that technology may be to blame. This is certainly a situation that I’ve been expecting for a while.
In contrast to the Singularity proposed by Vernor Vinge, I believe that as people become more educated, have better tools, and live longer, it will be harder and harder for young, less well educated, and poorer people to compete. This will stratify society.