robot-148989_1280A report (pdf) by Bank of America Merrill Lynch predicts that unemployment due to technological innovation could eliminate nearly half of all jobs in the United States. This will further exacerbate income inequality, as the potential $7 trillion in new wealth from technology will likely be exclusively controlled by powerful individuals.

The report worries that this will lead to monopolization and impede innovation. While in the past, predictions of technology destroying human employment have been wrong, the article points out that in the 1930s technology made horses obsolete and the same could happen with humans.

The article suggests a Universal Basic Income as a potential solution to avoid this pitfall.

Jack Smith, “Even Big Banks Think Robot Automation Will Lead to Further Income Inequality”, Mic, November 11, 2015.

About Tyler Prochazka

Tyler Prochazka has written 96 articles.

Tyler Prochazka is a PhD student in Asia Pacific Studies at National Chengchi University in Taiwan. He is the opinion editor of Basic Income News and the chairman of UBI Taiwan. Support my work with UBI Taiwan: @typro