It would be foolish for any government to dissuade companies from investing in machines that are more productive. Pictured are Fanuc Corp robots assembling blender motors at a manufacturing facility in Utah, US. — Bloomberg
The rise of populist politicians across the rich world has led to a profound rethinking of the way developed economies work. In particular, the impact of automation on the labour market, and the disappearance of routine manufacturing jobs, has been blamed for the electoral successes of leaders such as US president Donald Trump and Italy’s Matteo Salvini.
Yet there are profound differences in what determines the economic winners and losers on the two sides of the Atlantic. In the US, the main factor deciding whether a worker can prosper in the age of robots appears to be education. Conversely, in the European Union, it seems to be whether staff have strong protection in their employment contracts – as many older industrial workers do here.
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