Job Killer
Bloomberg Businessweek|October 07, 2019
Concerns that machines would replace workers went viral during the Great Depression, sparking fears of chronic unemployment
Job Killer

Stories matter. That, in a nugget, is the central premise of Robert Shiller’s book Narrative Economics: How Stories Go Viral & Drive Major Economic Events. The Nobel laureate economist cites Bitcoin, the Laffer curve, and the gold standard as examples of narratives that became infectious, spread by word of mouth, popular media, and more recently the internet. These epidemics can influence the behavior of consumers and companies, causing them to postpone purchases and investments or making them overconfident about their financial future, which may result in excessive risk-taking. Shiller argues that if economists were better at understanding how these contagion episodes unfold, they might be better at predicting recessions and asset bubbles.

Some narratives, like viruses, simply die out. But others mutate or become dormant only to flare up again years or even decades later. Shiller devotes two chapters of his book to one particularly durable narrative—a superbug, if you will. What follows is an excerpt. Concerns that inventions of new machines powered by water, wind, horse, or steam, or that use human power more efficiently, might replace workers and cause massive unemployment have an extremely long history, going back to ancient times. Aristotle imagined a future in which “the shuttle would weave and the plectrum touch the lyre without a hand to guide them.” In such a world, “chief workmen would not want servants, nor masters slaves,” he concluded.

Still, it wasn’t until the 19th century, an era that brought innovations such as the water-powered textile loom, the mechanical thresher, and the Corliss steam engine, that concerns about technology-based unemployment took center stage. The narrative was particularly contagious during economic depressions when many were unemployed.

This story is from the October 07, 2019 edition of Bloomberg Businessweek.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the October 07, 2019 edition of Bloomberg Businessweek.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEKView All
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023