Skip to main content

Neo-Luddites

200 years ago, a group of textile workers in Nottingham, Lancashire and Yorkshire set about destroying machines introduced by a new class of manufacturers at the vanguard of the Industrial Revolution. According to these workers (the so-called Luddites), this new technology was driving down wages and would eventually impoverish a substantial proportion of the working class. The British government introduced the Frame Breaking Act in 1812, which made machine breaking punishable by death. Lord Bryon, the famous poet, spoke against this Act in the House of Lords. A short history of the Luddites is available here

In this article, Robert Skidelsky revisits the Luddite movement in the light of changes in Western society. First, there have been depressed wages for many workers in Western economies for several decades. Second, the IT revolution is slowly making many cognitive tasks obsolete. Do we need labour anymore? Do we need neo-Luddites? Or is there nothing to worry about? 

  

Popular posts from this blog

Bitcoin Bubble?

According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money.   George Selgin , a free banker, takes an opposing view - click here .  Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.

How Valuable Are Connections?

Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press .