Can Tech Add Middle-Class Jobs?

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July 30 (Bloomberg) -- MIT Sloan School of Management Professor Erik Brynjolfsson discusses jobs and the the tech industry with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

He joins me now from the m.i.t. campus.

What do you make of the president's remarks today?

What kind of jobs could this actually create?

I think it's going to create jobs in two ways.

First, it's going to encourage companies to bring a lot of cash back to america.

Apple has over 100 and dollars overseas.

Altogether, close to a trillion dollars sitting over there.

If those companies bring the money back, they can put their own workers in the supply chain to work.

He's talking on the order of $50 billion of spending on our roads and ridges and that will employ a lot of people as well.

Is he talking about jobs and an amazon for film and center or engineers?

Some of that repatriation will create software designers, but the infrastructure spending is aimed at construction workers, the middle of the income distribution.

The amazon fulfillment center is a great example of creating those jobs as well.

It is relatively rare.

They are paid about $11 per hour which is more than the typical retail employee.

But most of it's going to be in the infrastructure and from repatriation.

Aren't a lot of the jobs temporary jobs?

Many of them are, but on balance, this is a place where you see technology and humans work together to complement each other.

You see a lot of technology all right replacing workers, so this is a place where wagers are somewhat higher than they would be in less technology oriented establishments.

We have covered some of the robots in the amazon for film and center.

It's leading to innovation in automation.

That is replacing jobs.

Does technology sometimes destroy more jobs than it creates?

That is certainly true.

In the past decade, this is just a great recession, but over the past 10 or 15 years, we haven't seen much job growth a cousin even though technology is making the pie bigger, it on balance has been automating more jobs than it has been making.

The big job is to tell that act toward the positive number.

-- told that back toward the positive number.

How can companies prepare for potential legislation?

Hopefully they will be looking at the opportunities to use some of that money being repatriated.

We have a lot of unemployed construction workers and companies that are way below capacity.

This is a particularly good time to be rebuilding our infrastructure.

Must economists would agree that infrastructure generates long- term growth and doing it during a recession or a slump is a particularly good time.

I'm hoping companies will have some shovel ready projects ready to put into action as the money comes back.

Is there a way for some of these companies to create more jobs without the help of the government?

Amazon is a great example of that great typically they create work not directly by hiring people, but by creating technology that makes all the other businesses in the country more efficient.

When you get general electric or the hospital or the hospital services firm, that's where many of the jobs are created.

There's is a great study that suggested three to five additional jobs were created for everyone in the tech sector itself.

This text has been automatically generated. It may not be 100% accurate.


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