1) effect has been surprisingly small. It's often called the "productivity paradox" Robert Solow said it in late 80s: “You can see the computer age everywhere but in the productivity statistics.”
2) The reasons are complex.
One possible reason is that productivity increase -> labor share declines -> less demand -> smaller GDP growth.
People always incorrectly assume that unemployment is the danger from automation. The real issue is declining labor share. People with jobs get smaller share of the work they do, because computers (capital asset) is replacing labor.
1) effect has been surprisingly small. It's often called the "productivity paradox" Robert Solow said it in late 80s: “You can see the computer age everywhere but in the productivity statistics.”
2) The reasons are complex.
One possible reason is that productivity increase -> labor share declines -> less demand -> smaller GDP growth.
People always incorrectly assume that unemployment is the danger from automation. The real issue is declining labor share. People with jobs get smaller share of the work they do, because computers (capital asset) is replacing labor.