In a recent social media exchange, two renowned economists, Paul Krugman and Betsey Stevenson, engaged in a thought-provoking discussion about the problematic nature of the term “unskilled labor.”
What Happened: Krugman, a Nobel laureate, responded to Stevenson’s post, agreeing that the term is often misused. He stated on X, “Often used as shorthand for workers without college degrees, but being a good plumber, carpenter, or child care worker can require a lot more fundamental human skill than being a Wall Street trader or, yes, a college professor.”
Krugman’s comments were in response to a post by Stevenson, a former member of 44th President Barack Obama‘s Council of Economic Advisers and current academic economist at the University of Michigan. Stevenson had sparked the initial conversation, stating, “Let’s have a serious conversation about the phrase ‘unskilled labor.'”
In a series of posts on X, Stevenson elaborated on her concerns, arguing that the term “unskilled labor” is deeply problematic. “It turns out that ‘unskilled’ labor makes no sense. Often people have mad skills, they just aren’t skills that are in a lot of demand. Or their skills are amazing, but they are plentiful relative to demand,” she wrote.
Stevenson emphasized that the market value of a skill set does not equate to its inherent human value. “Someone’s worth is never measured by their potential market wage,” she asserted.
The debate was sparked by a post from user @ThinkAppraiser, a real estate appraiser, who recounted an anecdote about a day laborer requesting $32 per hour, which the poster found excessive.
Why It Matters: The debate over the term “unskilled labor” ties into broader discussions about economic inequality and the value of work. In 2015, Warren Buffett emphasized that no American willing to work should live in poverty, given the nation’s wealth. “You really shouldn’t have an economy with over $50,000 in GDP per person and have lots of people living in poverty who are willing to work,” Buffett said in a video.
Furthermore, Elon Musk has predicted a future where artificial intelligence renders traditional employment obsolete, leading to a system of “universal high income.” Musk shared this vision at the inaugural AI Safety Summit, suggesting that AI will eventually perform all jobs, allowing people to work only if they choose to.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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