Automation will change the job market structure, i.e. what jobs and wages are available, which will have two major effects:
1. Change in income distribution and therefore inequality (not necessarily for the worse, but it seems likely). People often say that automation will result in unemployment, but that's only true if the minimum wage is fairly high. The real danger is rising income inequality.
2. Change of the fraction of GDP that goes to labour (as opposed to capital). Again, seems like it will be a change for the worse. The share of labour has been slowly decreasing for some time.
1. Change in income distribution and therefore inequality (not necessarily for the worse, but it seems likely). People often say that automation will result in unemployment, but that's only true if the minimum wage is fairly high. The real danger is rising income inequality.
2. Change of the fraction of GDP that goes to labour (as opposed to capital). Again, seems like it will be a change for the worse. The share of labour has been slowly decreasing for some time.