The fear of job-stealing robots has been recently stoked in the media and pundits frequently refer to automation as a key driver of long-term middle-class wage stagnation. But are robots actually transforming the labor market at an unprecedented pace? Nope—in fact, the opposite is true. First, it’s important to note that technology and automation have consistently transformed the way work gets done. So, technology itself is not a problem. Robots and automation allow us to increase efficiency by making more things for less money. When goods and services are cheaper, consumers can afford to buy more robot-made stuff, or have money left over to spend on other things. When consumers spend their leftover cash on additional goods and services, it creates jobs. These new jobs help compensate for the jobs lost to automation.
