Arin Dube flags risks in automation impact on income distribution

Arin Dube flags risks in automation impact on income distribution
Automation impact on income

In a provocative analysis, Arin Dube examines the impact of automation on income distribution. He highlights that automation shifts income towards capital owners with a lower marginal propensity to consume (MPC), thereby weakening aggregate demand.

Dube also suggests that higher unemployment could further depress wages, creating a detrimental economic cycle. His insights are based on a Keynesian perspective where reduced demand and higher unemployment align with the wage Phillips curve.

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