NEW WORLD ORDER Labor, CAPITAL and ideas in the power law economy Antti Kauppila, Tommi Vallas, Jesse Karjalainen

Structure Summary Criticism Key message Reasons behind Implications Proposed solution Criticism

Key message

Scarcity of inputs - Present Future DEVELOPING COUNTRIES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRIES DEVELOPED COUNTRIES DEVELOPING COUNTRIES

Power Law Economy

Reasons behind Technology Automation Digitalization 1 2 3

Implications ‘’The second machine age’’ Technology has sped globalization One large market for labor, capital and other inputs ‘’The second machine age’’ Where is this all going to lead?

The solutions Adjust and adapt Educated work force and an entrepreneurial culture Public investments in high-quality basic services

Critique Lack of empirical evidence The access to cheap labor will continue to matter Not everything is economically viable to automate High production amount Automation ? Cheap labor High product variety

Critique Why would the second machine age be different from the first one? Although structural changes tend to wipe old jobs away, they to tend to create new ones in return Digital capital is not always accessible for “next to zero cost” replication Ideas are not everything Skilled labor and capital is needed for execution