Acemoglu argues new technology, in and of itself, hasn’t been the catalyst for widespread economic growth that most have touted it as. In actuality, tech only benefits and enriches those at the top and harms broader society when left to its own devices.
It’s an important distinction, Aki writes, as new technology has been pitched — particularly during the AI boom — as net-positive. Executives like to say innovations will empower employees to work better instead of making them obsolete.
But that equation only works, Acemoglu says, if the tech creates more new tasks than it takes away and there is a balance of power between employer and employee.
Unfortunately for us, we fail on both counts when it comes to the AI boom.
Acemoglu’s research found that every additional robot introduced since 1990 has reduced employment by roughly six humans. That type of math doesn’t indicate tech is leaving much work for the rest of us.
Meanwhile, the power dynamics between boss and employee have gotten increasingly lopsided. CEOs made about 272 times more than their workers in 2022, according to a recent report. And the percentage of unionized workers has dropped to a record low.
If you’re banking on regulators coming to the rescue, good luck. In recent years, some members of Congress have lacked a basic understanding of technology, let alone something as complex as generative AI.
In the meantime, tech companies aren’t slowing down, as they help themselves to plenty of our data to train their models. It’s led to a “shadow war” over the information, former GitHub CEO Nat Friedman said in a recent interview.
Private credit is the hottest job on Wall Street. Money managers willing to lend are hitting it big thanks to sky-high interest rates and risk-averse big banks. The $1.5 trillion market, which offers impressive pay packages, is in the middle of a talent frenzy.
Just when you thought the housing market couldn’t get any worse. The median monthly mortgage payment — $2,632 — is now at an all-time high, according to a new Redfin report. And it’s set to get worse, as recently purchased homes with the highest mortgage rates since 2001 haven’t yet been priced into the data.
Be prepared to sleep in the office if you want to run a successful hedge fund. Renaissance Technologies CEO Peter Brown said he spent 2,000 nights in his office and didn’t “see how I could do it otherwise.” The result: The firm’s flagship fund averaged nearly 70% returns over two decades.
A trio of AI pioneers: “The scholar, the pragmatist, and the rainmaker.” The three partners of Bloomberg Beta have been prolific AI investors for more than a decade. Here’s how they rewrote the VC playbook.
McAfee CEO warns about the “exploding” cybersecurity risks that generative AI poses. Greg Johnson highlighted how the technology is making phishing more sophisticated. This can include fake AI-generated phone calls or videos that indicate your loved one is in distress.
3 things in business
Tupac, cocaine, murder: The incredible saga of the Rosemond brothers. They founded rap’s most notorious management firm and were responsible for the likes of The Game, Salt-N-Pepa, Akon, Sean Kingston, and Gucci Mane. But the firm was originally created as a “hideout” for their drug empire.
The two work archetypes: 9-to-5 “splitters” and flexible “blenders.” There’s a major disconnect between workers and bosses. Around half of Americans want a defined 9-to-5 work schedule. Meanwhile, bosses think most workers want to do chores throughout the day alongside work.
A guide on when to tip and when it’s okay to skip. More and more places are asking for tips. Etiquette experts revealed that it’s okay to skip tipping for things like takeout and coffee. Meanwhile, you may want to tip for food deliveries.
In other news
What’s happening today
The 16th Annual Academy of Country Music Honors is tonight. The award show is hosted by Carly Pearce for the third year in a row and will air on FOX.
It’s International Equal Pay Day. The UN General Assembly created this day in 2019 with “equal pay for work of equal value” in mind. Globally, there is an estimated 20% gender pay gap.