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00:00THANK YOU SO MUCH FOR JOINING US. YOU HAVE DONE A LOT OF INTERESTING RESEARCH ON THIS CURRENT ERA OF THE LABOR MARKET. AND THE FUTURE OF LABOR. THERE IS THIS VIEW WE ARE CLOSE TO FULL EMPLOYMENT, THAT IT COULD FEED INTO INFLATION? >> I WOULDN'T THINK ABOUT THAT AT ALL? I THINK THERE IS A LOT MORE SLACK IN THE ECONOMY. LOOK OVER THE PAST 12 MONTHS, THE CPI WAS UP ONLY 1.5%. THAT WAS BELOW THE TARGET OF 2%. THAT IS NOT A SIGN OF AN OVERHEATING ECONOMY AT ALL. THE TECHNOLOGY IS MAKING IT POSSIBLE TO MAKE MORE MORE PRODUCTS AND SERVICES A LOT CHEAPER. A LOT OF THEM ARE FREE AND NOT EVEN COUNTED. I DON'T SEE THE OVERHEATING A LOT OF PEOPLE ARE TALKING ABOUT. >> WE HAVE THAT MASSIVE TECH DRIVEN INFLATION. IS IT MONETARY POLICY BASED OR IS IT SOMETHING ELSE? YOU SAY WE ARE NOT ANYWHERE CLOSE TO OVERHEATING. DOES IT IMPLY THE FED SHOULD STAY AT ZERO OR SHOULD WE BE THINKING ABOUT OTHER FORMS OF STIMULUS AND OTHER FORMS OF BOOSTING THE ECONOMY THAT MAY BE OUT OF THEIR PURVIEW? >> I THINK WE OUGHT TO LOOK AT THE FUNDAMENTALS PRE-IT I THINK THE FED HAS BEEN DOING A GREAT JOB. IS WHAT WE NEED TO DO IS LOOK AT MORE FUNDAMENTAL RESTRUCTURING OF THE ECONOMY. AS THE TECHNOLOGIES COME ONLINE, THERE IS SOME BIG TECTONIC CHANGES IN THE KINDS OF SKILLS THAT ARE NEEDED IN THE LABOR FORCE. THE TYPES OF REGULATIONS, THE TYPES OF ENTREPRENEURSHIP. WE NEED THESE LONG-TERM FIXES. WE SHOULD BE THINKING OUTSIDE 10, 20 YEARS. >> ARE WE GOING TO SEE JOB LOSSES FROM TECH TO ROBOTS ESSENTIALLY. OUR GOING TO SEE THAT TECHNOLOGICAL INNOVATION CREATE MORE JOBS? >> THAT ALL DEPENDS ON OUR CHOICES. WHENEVER PEOPLE ASK ME THIS PREDICTION QUESTION I WANT TO STRESS THAT THE TECHNOLOGY IS A TOOL THAT CAN BE USED TO CREATE MORE JOB LOSSES AND MANY COMPANIES AND PEOPLE ARE DOING THAT. IT CAN BE USED TO CREATE NEW JOBS. AND THE WAY WE RESPOND IS GOING TO MAKE ALL THE DIFFERENCE. WITH THE INDUSTRIALIZATION OF THE ECONOMY WE RESPONDED WITH MASS PUBLIC EDUCATION, WITH NEW KINDS OF ANTITRUST AND OTHER THINGS TO CHANGE THE ABILITY OF THE WORKFORCE TO ADAPT GOING FORWARD. WE CAN EMBRACE THOSE NEW TECHNOLOGIES TO CREATE LOTS OF NEW JOBS. WE ARE NOT DOING IT RIGHT NOW. I THINK BY AND LARGE PEOPLE HAVE BEEN LOOKING AT AUTOMATING EXISTING JOBS RATHER THAN HOW THEY CAN USE THIS TECHNOLOGY TO CREATE NEW GOODS AND SERVICES. >> LET ME ASK YOU A RELATED QUESTION, PRODUCTIVITY HAS BEEN A CONCERN FOR THE FED. IS IT MEASURED CORRECTLY, BECAUSE A LOT OF PEOPLE ARE SAYING THERE ARE SOME ANYWAYS WE ARE PRODUCTIVE -- SO MANY WAYS WE ARE PRODUCTIVE THAT IS NOT BEING MEASURED? >> CONGRATULATIONS, SCARLETT. THAT IS NOT JUST A WAY TO -- THE WAY TO BRUISED PRODUCTIVITY IS HAVING MORE MACHINES TO THE WORKFORCE. WE CAN ENJOY THAT SOCCER GAME AND I THINK THERE IS SOME SIGNIFICANT MISS MEASUREMENT. THERE IS SO MUCH FREE STUFF ON MY SMART PHONE, GPS, WIKIPEDIA, THE GDP STATISTICS, AND PEOPLE SPEND MORE AND MORE TIMES THAT MORE AND MORE TIME-CONSUMING COST GOODS.

MIT's Brynjolfsson: I Don't See U.S. Economy Overheating

Erik Brynjolfsson, a professor of economics at MIT, discusses the state of the U.S. economy and the future of labor with Bloomberg's Matt Miller, Scarlet Fu and Joe Weisenthal on "What'd You Miss?" (Source: Bloomberg)

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