By Mark Muro, Jacob Whiton, and Sifan Liu – Despite record profits, these are tough times for Big Tech. In 2017, the industry and society each began to realize the full ambiguity of tech’s transformations of the wider world.
To be sure, many of the era’s disconcerting tech-related mega-trends have tangled origins and predate the current “digitalization of everything” quantified in our recent report.
Yet as tech columnist Farhad Manjoo has noted, the rise of the giant tech platforms has now been linked to a long list of troubling developments (along with the creation of much value).
These developments range from such online concerns as fake news, online echo chambers, and addictive product design to broader analog challenges such as the rise of inequality, the hollowing out of the job distribution, and the spread of the gig economy and automation.
Last year, Elise Giannone demonstrated that the divergence of cities’ wages since 1980—after decades of convergence—reflects a mix of technology’s increased rewards to highly skilled tech workers and local industry clustering. more>