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Unions are among the most effective mechanisms available for addressing massive economic inequalities. Congress should adopt labor law reforms to better protect workers' right to organize, starting with the widely popular Protecting the Right to Organize (PRO) Act. Among other things, the PRO Act would create the first serious monetary penalties for employers that retaliate against workers for unionizing.

Congress must also adequately fund the National Labor Relations Board (NLRB) so the agency can enforce labor law.

Many US workers say they want a union, but far too few have one. Right now, workers who've won recent union elections are inviting employers to meet them as equals and start bargaining union contracts.

Labor unions are highly correlated with safer conditions because they give workers a voice in setting workplace policies and the ability to engage management in addressing concerns without fear of retaliation.

The Black-led, multiracial committees that have led organizing drives at Amazon warehouses and the young women baristas leading breakthrough organizing victories at Starbucks are changing the public face of the labor movement in powerful and promising ways.

Two-thirds of union workers are women and/or workers of color.

In any company, the transparency and consistency of a union contract that sets wage rates, scheduled raises and procedures for promotions helps guard against forms of discriminatory bias that otherwise disadvantage women and workers of color.

Unionizing workers will continue to need extraordinary solidarity, persistence and public support in order to succeed. This is a moment of opportunity for all of us. Anyone ready to start reversing the worst economic inequalities the US has seen in almost a century can choose now to join and support workers who are organizing unions.

By the end of World War II, however, American corporations were facing severe talent shortages. Their senior executives were growing old, and a dearth of hiring from the Depression through the war had resulted in a shortfall of able, well-trained managers. Finding people who had the potential to rise quickly through the ranks became an overriding preoccupation of American businesses. They began to devise a formal hiring-and-management system based in part on new studies of human behavior, and in part on military techniques developed during both world wars, when huge mobilization efforts and mass casualties created the need to get the right people into the right roles as efficiently as possible. By the 1950s, it was not unusual for companies to spend days with young applicants for professional jobs, conducting a battery of tests, all with an eye toward corner-office potential.

But companies abandoned their hard-edged practices for another important reason: many of their methods of evaluation turned out not to be very scientific.

this regime, so widespread in corporate America at mid-century, had almost disappeared by 1990. “I think an HR person from the late 1970s would be stunned to see how casually companies hire now,”

Many factors explain the change, he said, and then he ticked off a number of them: Increased job-switching has made it less important and less economical for companies to test so thoroughly. A heightened focus on short-term financial results has led to deep cuts in corporate functions that bear fruit only in the long term. The Civil Rights Act of 1964, which exposed companies to legal liability for discriminatory hiring practices, has made HR departments wary of any broadly applied and clearly scored test that might later be shown to be systematically biased.

about a quarter of the country’s corporations were using similar tests to evaluate managers and junior executives, usually to assess whether they were ready for bigger roles.

He has encouraged the company’s HR executives to think about applying the games to the recruitment and evaluation of all professional workers.

Knack makes app-based video games, among them Dungeon Scrawl, a quest game requiring the player to navigate a maze and solve puzzles, and Wasabi Waiter, which involves delivering the right sushi to the right customer at an increasingly crowded happy hour. These games aren’t just for play: they’ve been designed by a team of neuroscientists, psychologists, and data scientists to suss out human potential. Play one of them for just 20 minutes, says Guy Halfteck, Knack’s founder, and you’ll generate several megabytes of data, exponentially more than what’s collected by the SAT or a personality test. How long you hesitate before taking every action, the sequence of actions you take, how you solve problems—all of these factors and many more are logged as you play, and then are used to analyze your creativity, your persistence, your capacity to learn quickly from mistakes, your ability to prioritize, and even your social intelligence and personality. The end result, Halfteck says, is a high-resolution portrait of your psyche and intellect, and an assessment of your potential as a leader or an innovator.

When the results came back, Haringa recalled, his heart began to beat a little faster. Without ever seeing the ideas, without meeting or interviewing the people who’d proposed them, without knowing their title or background or academic pedigree, Knack’s algorithm had identified the people whose ideas had panned out. The top 10 percent of the idea generators as predicted by Knack were in fact those who’d gone furthest in the process.

What Knack is doing, Haringa told me, “is almost like a paradigm shift.” It offers a way for his GameChanger unit to avoid wasting time on the 80 people out of 100—nearly all of whom look smart, well-trained, and plausible on paper—whose ideas just aren’t likely to work out.

Aptitude, skills, personal history, psychological stability, discretion, loyalty—companies at the time felt they had a need (and the right) to look into them all. That ambit is expanding once again, and this is undeniably unsettling. Should the ideas of scientists be dismissed because of the way they play a game? Should job candidates be ranked by what their Web habits say about them? Should the “data signature” of natural leaders play a role in promotion? These are all live questions today, and they prompt heavy concerns: that we will cede one of the most subtle and human of skills, the evaluation of the gifts and promise of other people, to machines; that the models will get it wrong; that some people will never get a shot in the new workforce.

scoring distance from work could violate equal-employment-opportunity standards. Marital status? Motherhood? Church membership? “Stuff like that,” Meyerle said, “we just don’t touch”—at least not in the U.S., where the legal environment is strict. Meyerle told me that Evolv has looked into these sorts of factors in its work for clients abroad, and that some of them produce “startling results.”

consider the alternative. A mountain of scholarly literature has shown that the intuitive way we now judge professional potential is rife with snap judgments and hidden biases, rooted in our upbringing or in deep neurological connections that doubtless served us well on the savanna but would seem to have less bearing on the world of work.

We may like to think that society has become more enlightened since those days, and in many ways it has, but our biases are mostly unconscious, and they can run surprisingly deep. Consider race. For a 2004 study called “Are Emily and Greg More Employable Than Lakisha and Jamal?,” the economists Sendhil Mullainathan and Marianne Bertrand put white-sounding names (Emily Walsh, Greg Baker) or black-sounding names (Lakisha Washington, Jamal Jones) on similar fictitious résumés, which they then sent out to a variety of companies in Boston and Chicago. To get the same number of callbacks, they learned, they needed to either send out half again as many résumés with black names as those with white names, or add eight extra years of relevant work experience to the résumés with black names.

a sociologist at Northwestern, spent parts of the three years from 2006 to 2008 interviewing professionals from elite investment banks, consultancies, and law firms about how they recruited, interviewed, and evaluated candidates, and concluded that among the most important factors driving their hiring recommendations were—wait for it—shared leisure interests.

Lacking “reliable predictors of future performance,” Rivera writes, “assessors purposefully used their own experiences as models of merit.” Former college athletes “typically prized participation in varsity sports above all other types of involvement.” People who’d majored in engineering gave engineers a leg up, believing they were better prepared.

the prevailing system of hiring and management in this country involves a level of dysfunction that should be inconceivable in an economy as sophisticated as ours. Recent survey data collected by the Corporate Executive Board, for example, indicate that nearly a quarter of all new hires leave their company within a year of their start date, and that hiring managers wish they’d never extended an offer to one out of every five members on their team

In the late 1990s, as these assessments shifted from paper to digital formats and proliferated, data scientists started doing massive tests of what makes for a successful customer-support technician or salesperson. This has unquestionably improved the quality of the workers at many firms.

In 2010, however, Xerox switched to an online evaluation that incorporates personality testing, cognitive-skill assessment, and multiple-choice questions about how the applicant would handle specific scenarios that he or she might encounter on the job. An algorithm behind the evaluation analyzes the responses, along with factual information gleaned from the candidate’s application, and spits out a color-coded rating: red (poor candidate), yellow (middling), or green (hire away). Those candidates who score best, I learned, tend to exhibit a creative but not overly inquisitive personality, and participate in at least one but not more than four social networks, among many other factors. (Previous experience, one of the few criteria that Xerox had explicitly screened for in the past, turns out to have no bearing on either productivity or retention

When Xerox started using the score in its hiring decisions, the quality of its hires immediately improved. The rate of attrition fell by 20 percent in the initial pilot period, and over time, the number of promotions rose. Xerox still interviews all candidates in person before deciding to hire them, Morse told me, but, she added, “We’re getting to the point where some of our hiring managers don’t even want to interview anymore”

Gone are the days, Ostberg told me, when, say, a small survey of college students would be used to predict the statistical validity of an evaluation tool. “We’ve got a data set of 347,000 actual employees who have gone through these different types of assessments or tools,” he told me, “and now we have performance-outcome data, and we can split those and slice and dice by industry and location.”

Evolv’s tests allow companies to capture data about everybody who applies for work, and everybody who gets hired—a complete data set from which sample bias, long a major vexation for industrial-organization psychologists, simply disappears. The sheer number of observations that this approach makes possible allows Evolv to say with precision which attributes matter more to the success of retail-sales workers (decisiveness, spatial orientation, persuasiveness) or customer-service personnel at call centers (rapport-building)

There are some data that Evolv simply won’t use, out of a concern that the information might lead to systematic bias against whole classes of people

the idea that hiring was a science fell out of favor. But now it’s coming back, thanks to new technologies and methods of analysis that are cheaper, faster, and much-wider-ranging than what we had before

what most excites him are the possibilities that arise from monitoring the entire life cycle of a worker at any given company.

Now the two companies are working together to marry pre-hire assessments to an increasing array of post-hire data: about not only performance and duration of service but also who trained the employees; who has managed them; whether they were promoted to a supervisory role, and how quickly; how they performed in that role; and why they eventually left.

What begins with an online screening test for entry-level workers ends with the transformation of nearly every aspect of hiring, performance assessment, and management.

I turned to Sandy Pentland, the director of the Human Dynamics Laboratory at MIT. In recent years, Pentland has pioneered the use of specialized electronic “badges” that transmit data about employees’ interactions as they go about their days. The badges capture all sorts of information about formal and informal conversations: their length; the tone of voice and gestures of the people involved; how much those people talk, listen, and interrupt; the degree to which they demonstrate empathy and extroversion; and more. Each badge generates about 100 data points a minute.

he tried the badges out on about 2,500 people, in 21 different organizations, and learned a number of interesting lessons. About a third of team performance, he discovered, can usually be predicted merely by the number of face-to-face exchanges among team members. (Too many is as much of a problem as too few.) Using data gathered by the badges, he was able to predict which teams would win a business-plan contest, and which workers would (rightly) say they’d had a “productive” or “creative” day. Not only that, but he claimed that his researchers had discovered the “data signature” of natural leaders, whom he called “charismatic connectors” and all of whom, he reported, circulate actively, give their time democratically to others, engage in brief but energetic conversations, and listen at least as much as they talk.

His group is developing apps to allow team members to view their own metrics more or less in real time, so that they can see, relative to the benchmarks of highly successful employees, whether they’re getting out of their offices enough, or listening enough, or spending enough time with people outside their own team.

Torrents of data are routinely collected by American companies and now sit on corporate servers, or in the cloud, awaiting analysis. Bloomberg reportedly logs every keystroke of every employee, along with their comings and goings in the office. The Las Vegas casino Harrah’s tracks the smiles of the card dealers and waitstaff on the floor (its analytics team has quantified the impact of smiling on customer satisfaction). E‑mail, of course, presents an especially rich vein to be mined for insights about our productivity, our treatment of co-workers, our willingness to collaborate or lend a hand, our patterns of written language, and what those patterns reveal about our intelligence, social skills, and behavior.

people analytics will ultimately have a vastly larger impact on the economy than the algorithms that now trade on Wall Street or figure out which ads to show us. He reminded me that we’ve witnessed this kind of transformation before in the history of management science. Near the turn of the 20th century, both Frederick Taylor and Henry Ford famously paced the factory floor with stopwatches, to improve worker efficiency.

“The quantities of data that those earlier generations were working with,” he said, “were infinitesimal compared to what’s available now. There’s been a real sea change in the past five years, where the quantities have just grown so large—petabytes, exabytes, zetta—that you start to be able to do things you never could before.”

People analytics will unquestionably provide many workers with more options and more power. Gild, for example, helps companies find undervalued software programmers, working indirectly to raise those people’s pay. Other companies are doing similar work. One called Entelo, for instance, specializes in using algorithms to identify potentially unhappy programmers who might be receptive to a phone cal

He sees it not only as a boon to a business’s productivity and overall health but also as an important new tool that individual employees can use for self-improvement: a sort of radically expanded The 7 Habits of Highly Effective People, custom-written for each of us, or at least each type of job, in the workforce.

the most exotic development in people analytics today is the creation of algorithms to assess the potential of all workers, across all companies, all the time.

The way Gild arrives at these scores is not simple. The company’s algorithms begin by scouring the Web for any and all open-source code, and for the coders who wrote it. They evaluate the code for its simplicity, elegance, documentation, and several other factors, including the frequency with which it’s been adopted by other programmers. For code that was written for paid projects, they look at completion times and other measures of productivity. Then they look at questions and answers on social forums such as Stack Overflow, a popular destination for programmers seeking advice on challenging projects. They consider how popular a given coder’s advice is, and how widely that advice ranges.

The algorithms go further still. They assess the way coders use language on social networks from LinkedIn to Twitter; the company has determined that certain phrases and words used in association with one another can distinguish expert programmers from less skilled ones. Gild knows these phrases and words are associated with good coding because it can correlate them with its evaluation of open-source code, and with the language and online behavior of programmers in good positions at prestigious companies.

having made those correlations, Gild can then score programmers who haven’t written open-source code at all, by analyzing the host of clues embedded in their online histories. They’re not all obvious, or easy to explain. Vivienne Ming, Gild’s chief scientist, told me that one solid predictor of strong coding is an affinity for a particular Japanese manga site.

Gild’s CEO, Sheeroy Desai, told me he believes his company’s approach can be applied to any occupation characterized by large, active online communities, where people post and cite individual work, ask and answer professional questions, and get feedback on projects. Graphic design is one field that the company is now looking at, and many scientific, technical, and engineering roles might also fit the bill. Regardless of their occupation, most people leave “data exhaust” in their wake, a kind of digital aura that can reveal a lot about a potential hire.

professionally relevant personality traits can be judged effectively merely by scanning Facebook feeds and photos. LinkedIn, of course, captures an enormous amount of professional data and network information, across just about every profession. A controversial start-up called Klout has made its mission the measurement and public scoring of people’s online social influence.

Mullainathan expressed amazement at how little most creative and professional workers (himself included) know about what makes them effective or ineffective in the office. Most of us can’t even say with any certainty how long we’ve spent gathering information for a given project, or our pattern of information-gathering, never mind know which parts of the pattern should be reinforced, and which jettisoned. As Mullainathan put it, we don’t know our own “production function.”

Over time, better job-matching technologies are likely to begin serving people directly, helping them see more clearly which jobs might suit them and which companies could use their skills. In the future, Gild plans to let programmers see their own profiles and take skills challenges to try to improve their scores. It intends to show them its estimates of their market value, too, and to recommend coursework that might allow them to raise their scores even more. Not least, it plans to make accessible the scores of typical hires at specific companies, so that software engineers can better see the profile they’d need to land a particular job

Knack, for its part, is making some of its video games available to anyone with a smartphone, so people can get a better sense of their strengths, and of the fields in which their strengths would be most valued. (Palo Alto High School recently adopted the games to help students assess careers.) Ultimately, the company hopes to act as matchmaker between a large network of people who play its games (or have ever played its games) and a widening roster of corporate clients, each with its own specific profile for any given type of job.

When I began my reporting for this story, I was worried that people analytics, if it worked at all, would only widen the divergent arcs of our professional lives, further gilding the path of the meritocratic elite from cradle to grave, and shutting out some workers more definitively. But I now believe the opposite is likely to happen, and that we’re headed toward a labor market that’s fairer to people at every stage of their careers

For decades, as we’ve assessed people’s potential in the professional workforce, the most important piece of data—the one that launches careers or keeps them grounded—has been educational background: typically, whether and where people went to college, and how they did there. Over the past couple of generations, colleges and universities have become the gatekeepers to a prosperous life. A degree has become a signal of intelligence and conscientiousness, one that grows stronger the more selective the school and the higher a student’s GPA, that is easily understood by employers, and that, until the advent of people analytics, was probably unrivaled in its predictive powers.

the limitations of that signal—the way it degrades with age, its overall imprecision, its many inherent biases, its extraordinary cost—are obvious. “Academic environments are artificial environments,” Laszlo Bock, Google’s senior vice president of people operations, told The New York Times in June. “People who succeed there are sort of finely trained, they’re conditioned to succeed in that environment,” which is often quite different from the workplace.

because one’s college history is such a crucial signal in our labor market, perfectly able people who simply couldn’t sit still in a classroom at the age of 16, or who didn’t have their act together at 18, or who chose not to go to graduate school at 22, routinely get left behind for good. That such early factors so profoundly affect career arcs and hiring decisions made two or three decades later is, on its face, absurd.

I spoke with managers at a lot of companies who are using advanced analytics to reevaluate and reshape their hiring, and nearly all of them told me that their research is leading them toward pools of candidates who didn’t attend college—for tech jobs, for high-end sales positions, for some managerial roles. In some limited cases, this is because their analytics revealed no benefit whatsoever to hiring people with college degrees; in other cases, and more often, it’s because they revealed signals that function far better than college history,

Google, too, is hiring a growing number of nongraduates. Many of the people I talked with reported that when it comes to high-paying and fast-track jobs, they’re reducing their preference for Ivy Leaguers and graduates of other highly selective schools.

This process is just beginning. Online courses are proliferating, and so are online markets that involve crowd-sourcing. Both arenas offer new opportunities for workers to build skills and showcase competence. Neither produces the kind of instantly recognizable signals of potential that a degree from a selective college, or a first job at a prestigious firm, might. That’s a problem for traditional hiring managers, because sifting through lots of small signals is so difficult and time-consuming.

all of these new developments raise philosophical questions. As professional performance becomes easier to measure and see, will we become slaves to our own status and potential, ever-focused on the metrics that tell us how and whether we are measuring up? Will too much knowledge about our limitations hinder achievement and stifle our dreams? All I can offer in response to these questions, ironically, is my own gut sense, which leads me to feel cautiously optimistic.

Google’s understanding of the promise of analytics is probably better than anybody else’s, and the company has been changing its hiring and management practices as a result of its ongoing analyses. (Brainteasers are no longer used in interviews, because they do not correlate with job success; GPA is not considered for anyone more than two years out of school, for the same reason—the list goes on.) But for all of Google’s technological enthusiasm, these same practices are still deeply human. A real, live person looks at every résumé the company receives. Hiring decisions are made by committee and are based in no small part on opinions formed during structured interviews.

But labor economists have long questioned this view

the labor force — is people. And because workers are people, wages are not, in fact, like the price of butter, and how much workers are paid depends as much on social forces and political power as it does on simple supply and demand.

What’s the evidence? First, there is what actually happens when minimum wages are increased. Many states set minimum wages above the federal level, and we can look at what happens when a state raises its minimum while neighboring states do no

the overwhelming conclusion from studying these natural experiments is that moderate increases in the minimum wage have little or no negative effect on employment.

Then there’s history. It turns out that the middle-class society we used to have didn’t evolve as a result of impersonal market forces — it was created by political action, and in a brief period of time

America was still a very unequal society in 1940, but by 1950 it had been transformed by a dramatic reduction in income disparities, which the economists Claudia Goldin and Robert Margo labeled the Great Compression.

How did that happen?

Part of the answer is direct government intervention, especially during World War II, when government wage-setting authority was used to narrow gaps between the best paid and the worst paid. Part of it, surely, was a sharp increase in unionization. Part of it was the full-employment economy of the war years, which created very strong demand for workers and empowered them to seek higher pay.

the Great Compression didn’t go away as soon as the war was over. Instead, full employment and pro-worker politics changed pay norms, and a strong middle class endured for more than a generation. Oh, and the decades after the war were also marked by unprecedented economic growth.

Walmart is under political pressure over wages so low that a substantial number of employees are on food stamps and Medicaid. Meanwhile, workers are gaining clout thanks to an improving labor market, reflected in increasing willingness to quit bad jobs.

its justification for the move echoes what critics of its low-wage policy have been saying for years: Paying workers better will lead to reduced turnover, better morale and higher productivity.

What this means, in turn, is that engineering a significant pay raise for tens of millions of Americans would almost surely be much easier than conventional wisdom suggests. Raise minimum wages by a substantial amount; make it easier for workers to organize, increasing their bargaining power; direct monetary and fiscal policy toward full employment, as opposed to keeping the economy depressed out of fear that we’ll suddenly turn into Weimar Germany. It’s not a hard list to implement — and if we did these things we could make major strides back toward the kind of society most of us want to live in.

The point is that extreme inequality and the falling fortunes of America’s workers are a choice, not a destiny imposed by the gods of the market. And we can change that choice if we want to.

many who work in meatpacking, farm work and other front-line industries don’t have the option to work from home, and their employers don’t provide them with paid sick leave. 

Biden and Harris’ platform includes a commitment to work with Congress to pass legislation to create a path to citizenship for all undocumented immigrants in the U.S.  

As the coronavirus surges, Latinx and Black people are around four times as likely to be hospitalized as white people, and nearly three times as likely to die,

Last month, France fast-tracked citizenship processes for hundreds of immigrant front-line workers, including health care workers, garbage collectors, housekeepers and cashiers. 

Undocumented immigrants are among those hardest hit by the pandemic since they are disproportionately represented among workers deemed “essential” — from farmworkers to building cleaners — who are risking their lives while millions of Americans stay home.

Patrice Lawrence, co-director of the immigrant group UndocuBlack Network, said legislation recognizing immigrants’ “humanity and our contributions to this country is long overdue” and that a bill protecting undocumented essential workers is “the bare minimum this country can do.”

Some companies provide paid leave anyway. In the last year, high-profile employers like Facebook and Goldman Sachs introduced or expanded paid leave for their employees.

But Clinton’s proposal differs from the bill in one crucial way. In order to finance the replacement wages that workers would get, the Gillibrand-DeLauro bill would impose a small payroll tax, of 0.4 percent, that employers and employees would split evenly.

Clinton has criticized that approach repeatedly because it would mean higher taxes on lower- and middle-income workers.

Sen. Marco Rubio (R-Fla.), the only Republican presidential candidate to address the issue formally, has said he’d offer small tax breaks to companies that offer paid leave -- an approach unlikely to have much impact, except perhaps to help well-off workers.

“The benefit of being one of the last countries in the world to adopt paid maternity leave is that we have been able to learn from other countries' experiences and the results are clear,” Betsey Stevenson, a University of Michigan economist and former adviser to President Barack Obama, told the Huffington Post on Thursday.

To advocates like Heather Boushey, chief economist and executive director of the Washington Center for Equitable Growth, that’s a welcome sign that American politics is finally talking about the challenges of parents who also have jobs.

Much of the nation has made the gut-wrenching choice to stop about half the economy and encourage most workers to stay home in an effort to save as many lives as possible

The average unemployment benefit check is currently $385 a week, which is less than half the typical weekly paycheck in the United States. The amount is slated to rise an additional $600 a week once President Trump signs the relief bill into law, a substantial increase meant to tide workers over as they are forced to stay home

All employees now have their temperature tested on the way into the warehouse. He’s had lengthy discussions with each worker about whether they should take the health risk of coming to work. They now run two shifts and mandate that employees stand about 10 feet from each other. Between the shifts, they sanitize the whole facility — doorknobs, surfaces, bathrooms, tools.

he forces his employees to bridge the enormous gap between technological reality and his dreams. This disconnect fosters a negligent and sometimes cruel workplace, to disastrous effect.

That fully self-driving announcement that so delighted his fans came as a far more jarring revelation to the project’s engineers, who found out about their staggering new mission when Mr. Musk tweeted about it.

This is the fundamental weakness of every organization run as a cult of personality: The dear leader can’t be everywhere or make every decision but often fails to provide the clear code of values that allows managers to independently shape their decisions around common goals.

Lawsuits by workers and California’s Department of Fair Employment and Housing allege that Black workers were tasked with menial physical labor in parts of the factory nicknamed “the plantation,” where they were subjected to racist slurs and graffiti.

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Female workers have sued, alleging a pervasive culture of sexual harassment and groping by supervisors. Mr. Musk was indifferent, emailing workers who experienced abuse that “it is important to be thick-skinned.”

He ultimately gave up and cobbled together a manual-labor-intensive production line in an open-air tent.

Mr. Musk’s reliance on hype is especially jarring.

By moving to buy Twitter, Mr. Musk has not only added another distraction to his long list but has also already shown the same drive to announce sweeping decisions in public.

Ultimately Mr. Musk’s goals for Twitter, as they are for Tesla, are not about making the right decisions for his companies or the people who make them possible.

They are about playing to the crowd and burnishing the legend that keeps fresh bodies and minds moving through the businesses that chew them up and spit them out.

This made the employee feel like remote work was just another set of disempowering rules.

Workers clearly felt empowered by having more control over their own work life. Companies must give people choices that match their unique work and life needs.

People crave predictability. Surprises make it harder for employees to plan their lives and have peace of mind. When constant change is inflicted on them, without a chance to anticipate it or participate in decisions about it, people get anxious and passive, and dream of escape.

For instance, workers who get unexpected spot bonuses sometimes feel that they don't know what to count on when calculating their future compensation; they'd rather have a predictable total package.

People thrive when their value is acknowledged by getting more responsibility, recognition and stature, such as a bigger title.

Jobs that convey a sense of purpose and meaning are more likely to exercise an emotional hold on people. Whether or not the company overall thinks it stands for social responsibility, people want to see that chance to make a difference in their immediate work experience.

Conventional wisdom holds that the best way to improve employment circumstances is to get an offer from a new company. That shouldn't have to be the case. Managers who want to retain people should act as if they are just now hiring them.

The best labor pool could be the one companies already have. They should treat their people as a precious resource and give them what they want from work. Rewarding them will reward the business.

The economics community just hasn't spent much time over the past couple of decades focusing on the effect that machine intelligence is likely to have on the labor marke

The Digital Revolution is different because computers can perform cognitive tasks too, and that means machines will eventually be able to run themselves. When that happens, they won't just put individuals out of work temporarily. Entire classes of workers will be out of work permanently. In other words, the Luddites weren't wrong. They were just 200 years too early

Slowly but steadily, labor's share of total national income has gone down, while the share going to capital owners has gone up. The most obvious effect of this is the skyrocketing wealth of the top 1 percent, due mostly to huge increases in capital gains and investment income.

Robotic pets are growing so popular that Sherry Turkle, an MIT professor who studies the way we interact with technology, is uneasy about it: "The idea of some kind of artificial companionship," she says, "is already becoming the new normal."

robots will take over more and more jobs. And guess who will own all these robots? People with money, of course. As this happens, capital will become ever more powerful and labor will become ever more worthless. Those without money—most of us—will live on whatever crumbs the owners of capital allow us.

Economist Paul Krugman recently remarked that our long-standing belief in skills and education as the keys to financial success may well be outdated. In a blog post titled "Rise of the Robots," he reviewed some recent economic data and predicted that we're entering an era where the prime cause of income inequality will be something else entirely: capital vs. labor.

while it's easy to believe that some jobs can never be done by machines—do the elderly really want to be tended by robots?—that may not be true.

Third, as more people compete for fewer jobs, we'd expect to see middle-class incomes flatten in a race to the bottom.

The question we want to answer is simple: If CBTC is already happening—not a lot, but just a little bit—what trends would we expect to see? What are the signs of a computer-driven economy?

if automation were displacing labor, we'd expect to see a steady decline in the share of the population that's employed.

Second, we'd expect to see fewer job openings than in the past.

In the economics literature, the increase in the share of income going to capital owners is known as capital-biased technological change

Fourth, with consumption stagnant, we'd expect to see corporations stockpile more cash and, fearing weaker sales, invest less in new products and new factories

Fifth, as a result of all this, we'd expect to see labor's share of national income decline and capital's share rise.

We're already seeing them, and not just because of the crash of 2008. They started showing up in the statistics more than a decade ago. For a while, though, they were masked by the dot-com and housing bubbles, so when the financial crisis hit, years' worth of decline was compressed into 24 months. The trend lines dropped off the cliff.

Corporate executives should worry too. For a while, everything will seem great for them: Falling labor costs will produce heftier profits and bigger bonuses. But then it will all come crashing down. After all, robots might be able to produce goods and services, but they can't consume them

in another sense, we should be very alarmed. It's one thing to suggest that robots are going to cause mass unemployment starting in 2030 or so. We'd have some time to come to grips with that. But the evidence suggests that—slowly, haltingly—it's happening already, and we're simply not prepared for it.

the first jobs to go will be middle-skill jobs. Despite impressive advances, robots still don't have the dexterity to perform many common kinds of manual labor that are simple for humans—digging ditches, changing bedpans. Nor are they any good at jobs that require a lot of cognitive skill—teaching classes, writing magazine articles

in the middle you have jobs that are both fairly routine and require no manual dexterity. So that may be where the hollowing out starts: with desk jobs in places like accounting or customer support.

In fact, there's even a digital sports writer. It's true that a human being wrote this story—ask my mother if you're not sure—but in a decade or two I might be out of a job too

Doctors should probably be worried as well. Remember Watson, the Jeopardy!-playing computer? It's now being fed millions of pages of medical information so that it can help physicians do a better job of diagnosing diseases. In another decade, there's a good chance that Watson will be able to do this without any human help at all.

Take driverless cars.

The next step might be passenger vehicles on fixed routes, like airport shuttles. Then long-haul trucks. Then buses and taxis. There are 2.5 million workers who drive trucks, buses, and taxis for a living, and there's a good chance that, one by one, all of them will be displaced

There will be no place to go but the unemployment lin

we'll need to let go of some familiar convictions. Left-leaning observers may continue to think that stagnating incomes can be improved with better education and equality of opportunity. Conservatives will continue to insist that people without jobs are lazy bums who shouldn't be coddled. They'll both be wrong.

The modern economy is complex, and most of these trends have multiple causes.

we'll probably have only a few options open to us. The simplest, because it's relatively familiar, is to tax capital at high rates and use the money to support displaced workers. In other words, as The Economist's Ryan Avent puts it, "redistribution, and a lot of it."

would we be happy in a society that offers real work to a dwindling few and bread and circuses for the rest?

Most likely, owners of capital would strongly resist higher taxes, as they always have, while workers would be unhappy with their enforced idleness. Still, the ancient Romans managed to get used to it—with slave labor playing the role of robots—and we might have to, as well.

 economist Noah Smith suggests that we might have to fundamentally change the way we think about how we share economic growth. Right now, he points out, everyone is born with an endowment of labor by virtue of having a body and a brain that can be traded for income. But what to do when that endowment is worth a fraction of what it is today? Smith's suggestion: "Why not also an endowment of capital? What if, when each citizen turns 18, the government bought him or her a diversified portfolio of equity?"

In simple terms, if owners of capital are capturing an increasing fraction of national income, then that capital needs to be shared more widely if we want to maintain a middle-class society.

it's time to start thinking about our automated future in earnest. The history of mass economic displacement isn't encouraging—fascists in the '20s, Nazis in the '30s—and recent high levels of unemployment in Greece and Italy have already produced rioting in the streets and larger followings for right-wing populist parties. And that's after only a few years of misery.

When the robot revolution finally starts to happen, it's going to happen fast, and it's going to turn our world upside down. It's easy to joke about our future robot overlords—R2-D2 or the Terminator?—but the challenge that machine intelligence presents really isn't science fiction anymore. Like Lake Michigan with an inch of water in it, it's happening around us right now even if it's hard to see

A robotic paradise of leisure and contemplation eventually awaits us, but we have a long and dimly lit tunnel to navigate before we get there.

Unions are a prominent presence at Amazon in Europe, but for years, the company successfully fought off labor organizing efforts in the United States.

"The onsite voting proposal, which is in the best interest of all parties — associate convenience, vote fidelity, and timeliness of vote count — was not accepted," Knox said. "We will continue to insist on measures for a fair election, and we want everyone to vote, so our focus is ensuring that's possible."

The workers' union-backed website calls for changes to procedures in disciplining, dismissals and safety.

Under-funding this stimulus will drag the global economy down. And any appearance that corporations are getting a more fair deal than individuals will make people not want to comply. A lack of compliance will drag on the crisis.

When it falls into ruin, the entire global economy drags. We saw that happen during the financial crisis of 2008.

Congress could under-fund the US coronavirus stimulus package. If they do, they put not only the economy but the effort to fight the virus at risk.

this weekend the Senate was unable to pass aid legislation

Democrats also rejected the bill over a lack of labor protections that would only mandate corporations keep employees "to the extent possible." They want more limits on executive compensation and share buybacks, and they want more money for healthcare workers. They accuse Republicans of being cheap, and writing a deal that favors corporations over average Americans.

The only proposal that comes close to being generous enough for individuals comes from Democratic Rep. Rashida Tlaib. It would give a prepaid card with $2,000 to every American. That card would then be recharged with $1,000 monthly until one year after the end of the coronavirus crisis. This is the kind of plan that will make Americans believe the government has their back, not just the backs of big corporations.

The distrust that is bred by corruption will make it much harder to fight this virus, potentially dragging out the crisis. The vast majority of Americans already think that our lack of trust in each other and our government makes it hard to solve problems, according to Pew Research. If Americans feel like this whole aid package is a handout to big corporations — which they also distrust — they may stop listening to authorities.

Goldman Sachs estimates that the recession brought on by fighting off coronavirus will trough in April, knocking 10% off US GDP. Over time, bank analysts wrote last week, the economy should begin to grow again incrementally. How fast depends on how well Americans comply with government social-distancing mandates. Americans have to want to comply.

Small and midsize companies make up 83% of the US economy, and thousands of workers are already out of a job across the country. Means-testing initial payments to individuals — that is, restricting who gets the checks based on income — is a waste of time.

Are we feeding our children a bunch of dangerous illusions about fairness and hard work and level playing fields? Are ideals a luxury only the rich can afford?

I’m reminded of the quote by John Adams: “I must study politics and war, that my sons may have the liberty to study mathematics and philosophy. My sons ought to study mathematics and philosophy, geography, natural history [and] naval architecture . . . in order to give their children a right to study painting, poetry, music, architecture, tapestry and porcelain.” For all intents and purposes, I guess I studied porcelain. The funny thing is that my parents came from a country (Peru) with a middle class so small that parents had to study business so that their children could study business. If I didn’t follow suit, it’s at least in part because I spent my childhood in the 1970s absorbing the nurturing message of a progressive pop culture that told me I could be anything I wanted, because this is America.

“When we see the contrast between the values we share and the realities we live in, that is the fundamental foundation for social change.”

Mr. Trump, the bombastic businessman who’s never held office, and Mr. Johnson, the former journalist turned mayor of London, might not put it this way, since they continue to cling to a conservative mantle. But they are riding a revolt of the working class against a 40-year-long project of the political right and its corporate backers that has dominated policy making in the English-speaking world for a generation.

The British political scientist Andrew Gamble at the University of Cambridge has argued that Western capitalism has experienced two transformational crises since the end of the 19th century. The first, brought about by the Depression of the 1930s, ended an era in which governments bowed to the gospel of the gold standard and were expected to butt out of the battles between labor and capital, letting markets function on their own, whatever the consequences

Mr. Keynes’s views ultimately prevailed, though, providing the basis for a new post-World War II orthodoxy favoring active government intervention in the economy and a robust welfare state. But that era ended when skyrocketing oil prices and economic mismanagement in the 1970s brought about a combination of inflation and unemployment that fatally undermined people’s trust in the state.

The Keynesian era ended when Margaret Thatcher and Ronald Reagan rode onto the scene with a version of capitalism based on tax cuts, privatization and deregulation that helped revive their engines of growth but led the workers of the world to the deeply frustrating, increasingly unequal economy of today.

After the Brexit vote, Lawrence Summers, former Treasury secretary under President Clinton and one of President Obama’s top economic advisers at the nadir of the Great Recession, laid out an argument for what he called “responsible nationalism,” which focused squarely on the interests of domestic workers.

Instead of negotiating more agreements to ease business across borders, governments would focus on deals to improve labor and environmental standards internationally. They might cut deals to prevent cross-border tax evasion.

There is, however, little evidence that the world’s leaders will go down that path. Despite the case for economic stimulus, austerity still rules across much of the West. In Europe, most governments have imposed stringent budget cuts — ensuring that all but the strongest economies would stall. In the United States, political polarization has brought fiscal policy — spending and taxes — to a standstill.

they do not qualify for basic protections like overtime pay and minimum wages.

independent contractors

many of which lose money and rely on investors to keep pouring in billions of dollars of capital, might find that it pays to treat workers better and even make some of them employees.

He knows that what his network is doing is against the national interest. He has just enough conscience to be aware that it is “terrible,” but not nearly enough to stop doing it. It might impair shareholder value, after all.

Mr. Moonves is suggesting that there is no difference in principle between entertainment and news. Both should be judged by the same standard—ratings. If policy speeches don’t attract large enough audiences, cut to a Trump rally.

If the leading purveyors of broadcast journalism make no distinction between news and entertainment, then who can blame viewers for seeing no difference between entertainment and politics?

American politicians and parties have used entertainment to draw audiences for the better part of two centuries. But there used to be countervailing forces, including prestigious broadcast news organizations. Not anymore. Once these organizations served as gatekeepers; now they are open-door enablers.

They are all in the grip of the same misunderstanding, that their business begins and ends with maximizing shareholder value.

They may believe that this is a statutory requirement or a fiduciary duty. If so, they are mistaken

It is Milton Friedman’s theory. “There is one and only one social responsibility of business,” he wrote in “Capitalism and Freedom,” “to use its resources and engage in activities designed to increase its profits.”

corporate law imposes no enforceable legal duty to maximize either profits or share prices.

As a policy argument, Friedman’s thesis flunks key empirical tests

And it is not politically sustainable. This is the clear meaning of the 2016 presidential election.

during the 1970s, inflation, recession, a stagnant stock market and rising competition from abroad created an opening for Friedman’s theory, which soon dominated corporate boardrooms.

In the name of maximizing shareholder value, corporations moved plants and jobs around the world, paid the lowest wages they could get away with, and scheduled work assignments to maintain managerial “flexibility,” whatever the consequences for workers’ families. Meanwhile, their lobbyists engineered a myriad of special interest breaks in the corporate tax code.

Now we can see what four decades of pursuing shareholder value at the expense of everything else has yielded

Public confidence in corporations is at rock-bottom, and public anger is sky-high

The revolt against the corporate economic agenda—free trade, a generous immigration policy, lower corporate taxes and the rest—is sweeping the country.

As the Republican rank and file has turned against corporations and New Democrats have given ground to left-wing populists, big business has been left politically homeless.

It will take corporate America a long time to climb out of this self-created hole.

Its first step should be to back long-overdue proposals for improving workers’ lives and incomes. Paid family leave is an idea whose time has come; so is a catch-up increase in the federal minimum wage; so are stable and predictable schedules for part-time workers.

Allowing workers to share in profits and productivity increases would be another good step.

Above all, corporate leaders should grasp the distinction between immediate gain and self-interest rightly understood. Pushing for the last increment of profit over the next quarter and the one after that comes at the expense of the strategies that can leave firms best positioned for the future.

America needs a new generation of corporate statesmen.

“What companies are looking for,” says Mary Jo King, the president of the National Résumé Writers’ Association, “is someone who can be all, do all, and pivot on a dime to solve any problem.”

The phenomenon is sped by automation, which usurps routine tasks, leaving employees to handle the nonroutine and unanticipated—and the continued advance of which throws the skills employers value into flux

Or, for that matter, on the relevance of the question What do you want to be when you grow up?

By 2020, a 2016 World Economic Forum report predicted, “more than one-third of the desired core skill sets of most occupations” will not have been seen as crucial to the job when the report was published

I asked John Sullivan, a prominent Silicon Valley talent adviser, why should anyone take the time to master anything at all? “You shouldn’t!” he replied.

Minimal manning—and the evolution of the economy more generally—requires a different kind of worker, with not only different acquired skills but different inherent abilities

It has implications for the nature and utility of a college education, for the path of careers, for inequality and employability—even for the generational divide.

Then, in 2001, Donald Rumsfeld arrived at the Pentagon. The new secretary of defense carried with him a briefcase full of ideas from the corporate world: downsizing, reengineering, “transformational” technologies. Almost immediately, what had been an experimental concept became an article of faith

But once cadets got into actual command environments, which tend to be fluid and full of surprises, a different picture emerged. “Psychological hardiness”—a construct that includes, among other things, a willingness to explore “multiple possible response alternatives,” a tendency to “see all experience as interesting and meaningful,” and a strong sense of self-confidence—was a better predictor of leadership ability in officers after three years in the field.

Because there really is no such thing as multitasking—just a rapid switching of attention—I began to feel overstrained, put upon, and finally irked by the impossible set of concurrent demands. Shouldn’t someone be giving me a hand here? This, Hambrick explained, meant I was hitting the limits of working memory—basically, raw processing power—which is an important aspect of “fluid intelligence” and peaks in your early 20s. This is distinct from “crystallized intelligence”—the accumulated facts and know-how on your hard drive—which peaks in your 50

Others noticed the change but continued to devote equal attention to all four tasks. Their scores fell. This group, Hambrick found, was high in “conscientiousness”—a trait that’s normally an overwhelming predictor of positive job performance. We like conscientious people because they can be trusted to show up early, double-check the math, fill the gap in the presentation, and return your car gassed up even though the tank was nowhere near empty to begin with. What struck Hambrick as counterintuitive and interesting was that conscientiousness here seemed to correlate with poor performance.

he discovered another correlation in his test: The people who did best tended to score high on “openness to new experience”—a personality trait that is normally not a major job-performance predictor and that, in certain contexts, roughly translates to “distractibility.”

To borrow the management expert Peter Drucker’s formulation, people with this trait are less focused on doing things right, and more likely to wonder whether they’re doing the right things.

High in fluid intelligence, low in experience, not terribly conscientious, open to potential distraction—this is not the classic profile of a winning job candidate. But what if it is the profile of the winning job candidate of the future?

One concerns “grit”—a mind-set, much vaunted these days in educational and professional circles, that allows people to commit tenaciously to doing one thing well

These ideas are inherently appealing; they suggest that dedication can be more important than raw talent, that the dogged and conscientious will be rewarded in the end.

he studied West Point students and graduates.

Traditional measures such as SAT scores and high-school class rank “predicted leader performance in the stable, highly regulated environment of West Point” itself.

It would be supremely ironic if the advance of the knowledge economy had the effect of devaluing knowledge. But that’s what I heard, recurrentl

“Fluid, learning-intensive environments are going to require different traits than classical business environments,” I was told by Frida Polli, a co-founder of an AI-powered hiring platform called Pymetrics. “And they’re going to be things like ability to learn quickly from mistakes, use of trial and error, and comfort with ambiguity.”

“We’re starting to see a big shift,” says Guy Halfteck, a people-analytics expert. “Employers are looking less at what you know and more and more at your hidden potential” to learn new things

advice to employers? Stop hiring people based on their work experience. Because in these environments, expertise can become an obstacle.

“The Curse of Expertise.” The more we invest in building and embellishing a system of knowledge, they found, the more averse we become to unbuilding it.

All too often experts, like the mechanic in LePine’s garage, fail to inspect their knowledge structure for signs of decay. “It just didn’t occur to him,” LePine said, “that he was repeating the same mistake over and over.

The devaluation of expertise opens up ample room for different sorts of mistakes—and sometimes creates a kind of helplessness.

Aboard littoral combat ships, the crew lacks the expertise to carry out some important tasks, and instead has to rely on civilian help

Meanwhile, the modular “plug and fight” configuration was not panning out as hoped. Converting a ship from sub-hunter to minesweeper or minesweeper to surface combatant, it turned out, was a logistical nightmare

So in 2016 the concept of interchangeability was scuttled for a “one ship, one mission” approach, in which the extra 20-plus sailors became permanent crew members

“As equipment breaks, [sailors] are required to fix it without any training,” a Defense Department Test and Evaluation employee told Congress. “Those are not my words. Those are the words of the sailors who were doing the best they could to try to accomplish the missions we gave them in testing.”

These results were, perhaps, predictable given the Navy’s initial, full-throttle approach to minimal manning—and are an object lesson on the dangers of embracing any radical concept without thinking hard enough about the downsides

a world in which mental agility and raw cognitive speed eclipse hard-won expertise is a world of greater exclusion: of older workers, slower learners, and the less socially adept.

if you keep going down this road, you end up with one really expensive ship with just a few people on it who are geniuses … That’s not a future we want to see, because you need a large enough crew to conduct multiple tasks in combat.

hat does all this mean for those of us in the workforce, and those of us planning to enter it? It would be wrong to say that the 10,000-hours-of-deliberate-practice idea doesn’t hold up at all. In some situations, it clearly does

A spinal surgery will not be performed by a brilliant dermatologist. A criminal-defense team will not be headed by a tax attorney. And in tech, the demand for specialized skills will continue to reward expertise handsomely.

But in many fields, the path to success isn’t so clear. The rules keep changing, which means that highly focused practice has a much lower return

In uncertain environments, Hambrick told me, “specialization is no longer the coin of the realm.”

It leaves us with lifelong learning,

I found myself the target of career suggestions. “You need to be a video guy, an audio guy!” the Silicon Valley talent adviser John Sullivan told me, alluding to the demise of print media

I found the prospect of starting over just plain exhausting. Building a professional identity takes a lot of resources—money, time, energy. After it’s built, we expect to reap gains from our investment, and—let’s be honest—even do a bit of coasting. Are we equipped to continually return to apprentice mode? Will this burn us out?

Everybody I met on the Giffords seemed to share that mentality. They regarded every minute on board—even during a routine transit back to port in San Diego Harbor—as a chance to learn something new.

some paid as little as half as much as the M.T.A. employees who did the same work before the pandemic began, and many without access to health insurance.

a labor force that has been desperate for work at a time when hundreds of thousands have lost jobs in cleaning, construction and restaurants.

she had worked for nearly three months without a place to eat lunch or access to the station bathroom.

Instead, the cleaning crews were given a few rags, a bucket of cleaning solution and, according to several workers, a simple set of instructions: “Clean it like it’s your house.”

were alarmed by workers’ accounts.

Their accounts paint a picture of dismal working conditions, and highlight their unequal treatment compared with transit cleaners, who are paid up to $30 an hour and enjoy health insurance and other benefits, uniforms and MetroCards to swipe themselves into the system.

A worker named Juan described chasing down purse-snatchers and running to help co-workers threatened by homeless people who had commandeered their brooms and mops.

“Many people were getting paid minimum wage or just a dollar or two more,” Mr. Tecaxco said. “The conditions were terrible.”

When inspectors came, she said, no one said a word. “Truthfully, we were all afraid.”

Ms. Muñoz said she was fired in November without explanation. As the sole provider for her four children and parents in Puebla, Mexico, she pleaded to keep her job.

Labor leaders and liberal Democrats have seized on the union drive, saying it shows how Amazon is not as friendly to workers as the company says it is.

Lawmakers and regulators — not competitors — are some of its greatest threats, and it has spent significant time and money trying to keep the government away from its business.

I think the narrative is cooked now on their status as a monopoly, their status as an abusive employer and their status as one of the biggest spenders on lobbying in Washington, D.C.”

we’ve been surprised by some of the negative things we’ve seen certain members say in the press and on social media,”

In February, Mr. Biden appeared in a video that didn’t mention Amazon explicitly but was seen as a clear sign of support to the union.

We really think we are an example of what a U.S. company should be doing for its employees.”

They have also attacked Mr. Bezos, the richest person in the world by some measures, for his personal wealth.

In the final quarter of last year, Amazon paid Jeff Ricchetti $60,000, according to disclosure forms he filed with the government.

He has deep relationships with Mr. Biden’s inner circle, and has played in a garage band with Secretary of State Antony Blinken.

Amazon has promoted the $15-an-hour minimum in ads in publications frequently used to reach government officials, including Politico and The New York Times. Its lobbyists have pushed for a federal law raising the wage.

When professors at Georgetown and New York Universities asked Americans in 2018 which institutions they had the most confidence in, only the military ranked higher than Amazon

That absolutely includes the Amazon workers in Alabama, just like workers in Washington State and across our country.”

“I often say we are the Bernie Sanders of employers, but that’s not quite right because we actually deliver a progressive workplace to our constituents,”

Over multiple years, family income fluctuates, and so the distribution of multiyear income is moderately more equal than the distribution of single-year income.

n one sense, the growth of inequality in the last part of the twentieth century comes as a surprise. In the 1950s, the bottom part of the income distribution contained large concentrations of two kinds of families: farm families whose in-kind income was not counted in Census data, and elderly families, many of whom were ineligible for the new Social Security program

Over subsequent decades, farm families declined as a proportion of the population while increased Social Security benefits and an expanding private pension system lifted elderly incomes. Both trends favored greater income equality but were outweighed by four main factors.

Family structure. Over time, the two-parent, one-earner family was increasingly replaced by low-income single-parent families and higher-income two-parent, two-earner families

Trade and technology increasingly shifted demand away from less-educated and less-skilled workers toward workers with higher education or particular skills. The result was a growing earnings gap between more- and less-educated/skilled workers.

With improved communications and transportation, people increasingly functioned in national, rather than local, markets. In these broader markets, persons with unique talents could command particularly high salaries.

In 2002, immigrants who had entered the country since 1980 constituted nearly 11 percent of the labor force (see immigration). A relatively high proportion of these immigrants had low levels of education and increased the number of workers competing for low-paid work.

A second offset to estimated inequality is economic mobility. Because most family incomes increase as people’s careers develop, long-run incomes are more equal than standard single-year statistics suggest

Is inequality of wages and incomes bad? The question seems ludicrous. Of course inequality is bad, isn’t it? Actually, no. What matters crucially is how the inequality came about.

Inequality of wages and incomes is clearly bad if it results from government privileges. Many people would find such an outcome unjust, but even more important to many economists is that such inequality sets up perverse incentives.

But inequality in wages and incomes in relatively free economies serves two important social functions.