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News Story Source: http://www.zerohedge.com
Back in 2015, BofA put together a simple equation trying to explain the pervasive deflationary wave around the globe when it said that "Deflation = Debt plus Disruption plus Demographics."
In his overnight take on recent events, Bloomberg macro commentator Mark Cudmore took another look at this underlying assumption, and specifically the "disruption" part, or the role played by technology, and machines, both of which are reducing the need for labor (and implicitly pressuring the global labor force growth), and concluded that "while those with specialized skills can continue to earn more in a wealthier world, the rise of robots provides a significant disinflationary force on the median wage globally. This effect will be most extreme in developed economies where labor costs are already elevated. (And as an aside, is the reason why increasing inequality and populism isn't going away any time soon)."
Adding demographics into the mix, Cudmore note
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