In the long run, the U.S. economy can be very flexible: 120 years ago, half of the population still worked on farms. So over the long run, we are optimistic that better education and training will prepare most of the workforce to do meaningful work in the computerized world. But education takes time and change is happening fast. Forty years ago, John Kennedy could say, “The rising tide lifts all the boats” and be correct. He governed in a lucky economic time when technology and trade did not favor one group of workers over others.
While politicians still invoke Kennedy’s language, it no longer applies. Technology and trade are still engines of economic growth but the engines now favor educated and skilled workers. Less educated workers are paying a big price so the nation as a whole can advance. The short run challenge is to work out a better safety net-long-run training, assistance in areas like health insurance-to get through this period.
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