The Hicks point is powerful. Productivity growth isn’t moral. It’s positional. If improvement happens in sectors where you don’t compete, everyone wins. If it lands directly in your comparative advantage, your income can fall even as global output rises. I see this in AI right now. Some firms are augmenting. Others are replacing. The difference determines whether the tide lifts you or drowns you. :)
The graphs clearly show that productivity spikes when millions of workers are laid off—2008/09 and 2020 have spikes for America. Losing millions of jobs is a negative event for an economy.
The Hicks point is powerful. Productivity growth isn’t moral. It’s positional. If improvement happens in sectors where you don’t compete, everyone wins. If it lands directly in your comparative advantage, your income can fall even as global output rises. I see this in AI right now. Some firms are augmenting. Others are replacing. The difference determines whether the tide lifts you or drowns you. :)
The graphs clearly show that productivity spikes when millions of workers are laid off—2008/09 and 2020 have spikes for America. Losing millions of jobs is a negative event for an economy.