Long-run economic growth depends on the application of new technologies that reshape production, adding new kinds of work to the economy. As new work is added to the old work, the skills of some workers are inevitably made obsolete. Throughout history, this process of creative destruction has created enormous wealth, but also undesired disruptions. How places adapt and incorporate new technologies into new work can determine the fortunes of entire cities and nations. Managing the transition into new work should therefore be a key priority for policymakers.
Technological change and new work
The application of new technologies that reshape production inevitably makes the skills of some workers obsolete. Managing the transition into new work should therefore be a key priority for policymakers