Technology, Inequality, and Real Estate

3 Replies

Please post your thoughts on the following quote:

"At a recent conference, rising inequality, new technology that replaces jobs, or neuroscience, or other new developments that could be disruptive to our way of life were discussed.

Consumer confidence indices tend to focus mostly on the next six months to a year, as if that dominated people's thought. But much bigger worries abound about coming decades, about the rest of our lives and of our children's lives.

It may seem paradoxical to some, but these increasing long-term fears may boost prices of stocks, bonds, and real estate to high levels while at the same time making the economic recovery anemic."

My personal belief is that the rise of technology and job elimination has increased the importance of owning/controlling the means of income producing assets.  That may include owning a business, income property, intellectual property or other assets that have value.  If you cannot create value with your hands, you better own something that generates income!

Luddite Fallacy.

Technology does not eliminate jobs, it creates them or changes the composition.  Technology increases overall productivity.  Loss of jobs that you hear about relating to technology advances is only anecdotal.

@Frank Jiang

Whether or not it's true is not the issue.  There is a large percentage of people who believe it is true.  That may be enough to drive real estate prices higher as they're looking for means to generate cash flow if they don't see themselves working much longer.

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