Journal of Economic Literature
ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)
Can Massive Technological Progress Hurt Workers? A Review of Power and Progress by Daron Acemoglu and Simon Johnson
Journal of Economic Literature
vol. 62,
no. 4, December 2024
(pp. 1671–81)
Abstract
This book offers a radical thesis: Technological innovation often benefits elites while worsening conditions for workers, challenging the common view that technology always improves living standards. Through historical transitions like the Industrial Revolution, the authors illustrate how innovations have frequently led to worker exploitation. They argue that governance, rather than competition, determines whether technological advances benefit society. In the digital age, platforms exploit user data without fair compensation, causing harm through addictive services and poor regulation. The book calls for stronger regulations to protect consumers and ensure that innovation aligns with societal well-being, especially as artificial intelligence spreads.Citation
Scott Morton, Fiona. 2024. "Can Massive Technological Progress Hurt Workers? A Review of Power and Progress by Daron Acemoglu and Simon Johnson." Journal of Economic Literature, 62 (4): 1671–81. DOI: 10.1257/jel.20241761Additional Materials
JEL Classification
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- J80 Labor Standards: General
- N30 Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: General, International, or Comparative
- N40 Economic History: Government, War, Law, International Relations, and Regulation: General, International, or Comparative
- N70 Economic History: Transport, International and Domestic Trade, Energy, Technology, and Other Services: General, International, or Comparative
- O31 Innovation and Invention: Processes and Incentives
- O33 Technological Change: Choices and Consequences; Diffusion Processes