The Great Recession Is Now the Great Restructuring

It's no longer just the Great Recession.  Now the experts are talking about the "Great Restructuring" of the economy.  Here's how the narrative goes.  Back in the Great Depression, the big problem was not just the depression; it was a Great Transition over a twenty-year period from 1930 to 1950.  Arnold Kling: Demand fell for human effort such as lifting, squeezing, and hammering. Demand increased for workers who could read and follow directions. The evolutionary process eventually changed us from a nation of laborers to a nation of clerks. The economy of clerks lasted for about half a century.  But now the economy needs more than clerks who can follow orders.  "If a job can be characterized by a precise set of instructions, then that job is a candidate to be automated or outsourced to modestly educated workers in developing countries."  The result is the "squeezed middle."  There is still a need for low skills, and high-skilled people are in...(Read Full Article)