MIT just discovered Strategic Sabotage?

While the economic orthodoxy believes that firm automate to maximize productivity, a new study revealed that some USA firm used automation to eliminate workers who earn “wage premium”. The also called it “inefficient targeting of automation”.

In the words of Daron Acemoglu who co-authored the research: “The higher the wage of the worker in a particular industry or occupation or task, the more attractive automation becomes to firms.” – now that’s an original finding!

From CasP perspective, is it basically mainstream economists “discovering” strategic sabotage?

The paper: “Automation and Rent Dissipation: Implications for Wages, Inequality, and Productivity,” appears in the May print issue of the Quarterly Journal of Economics. The authors are Acemoglu, who is an Institute Professor at MIT; and Pascual Restrepo, an associate professor of economics at Yale University. URL: https://economics.mit.edu/sites/default/files/2024-05/Automation%20and%20Rent%20Dissipation%20-%20Implications%20for%20Wages%20Inequality%20and%20Productivity.pdf

P.S.

I cannot believe it! I thought my boss was serious when he said he appreciates me. He won’t replace me. My boss is different!