Two big disappointments in the recent recovery have been the sluggish job growth and the continued underemployment of many people who had solidly middle class jobs before the recession but are now struggling to make ends meet with much lower incomes. Rick Newman recently detailed how routine jobs which used to help populate the middle class are disappearing. Essentially, lots of low-wage jobs are hard to automate and the same is true for most high-skill jobs. Unfortunately, many middle class jobs are “routine” according to the Dallas Federal Reserve Bank and can be automated. Thus, machines replace people and we get a jobless recovery. What is missing from this story is the villain, but I can reveal its identity here.
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