What implications does technology have for us?
When there are more people retired, more people consume without being productive. And thus the burden borne by the pension system becomes heavier.
The situation in OECD countries is clear: for every 100 people of working age (18-64 years) there are 28 people aged 65 or over. By 2050 this number of old people will have increased to 51. From this point of view the progress of automation may seem to be positive news.
How can young people escape dependency?
Older people are more likely to be inactive and in need of social benefits. The outlook changes, however, when technology and its development are taken into account. An article on the website of the INSEAD business school claims that (at least in the US), seniors are getting better with technology (especially those with high income and better education). Older workers are also using online platforms for their alternative work engagements.
With a growing number of working-age people facing unemployment because of automation, dependency is no longer a problem confined to the elderly: it is also becoming a real issue for people who are low-skilled. Some people argue that technological unemployment will have the strongest impact on young workers possessing few skills. After all, it is still all about how the available skills match the needs of the economy.
Technology complements the work of highly skilled people. Policy in this area will have to change. In the field of employment, new work models will be the new norm. Full-time employment, which is today common, will become obsolete.
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