People are paid substantially for expertise and know-how in specific activities, and in rich industrialized countries, there is no longer much value to pure physical labor. Expertise requires two things: it must produce a service that people value, and it must be scarce. When automation devalues a skill set, it happens not because no one needs the skills anymore but because a machine can do it better, cheaper, or faster.

causalpending

Speaker

David Autor

Evidence Quote

People are paid to a substantial extent, uh, for expertise...it needs to be scarce...automation...can devalue a skill set very quickly, not because no one needs the skills anymore, but because the machine can do it better [10:53]

Source

A Threat Bigger than China | MIT Economist David AutorReid Hoffman
Created: 8/11/2026, 6:32:32 AM

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