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By taking labor ever more out of the equation, automation removes any advantage countries with lower wage demands might have, because the costs of technology, unlike labor, are pretty much the same everywhere.

However, automation is not only likely to entrench further structural inequality between countries. Without a fundamental shift in the way economies are organized, it will dramatically exacerbate inequality within many countries as well. It will do this firstly by diminishing opportunities for unskilled and semi-skilled people to find decent employment, while simultaneously inflating the incomes of those few who continue to manage what are largely automated businesses. As importantly, it will increase returns on capital rather than labor, so expanding the wealth of those who have cash invested in businesses, rather than those who depend on taking cash from them in exchange for labor. This means straightforwardly that automation will generate further wealth for the already wealthy, while further disadvantaging those who do not have the means to purchase stakes in companies and so free-ride off the work done by automata. Of course, this would not be as much of a challenge were it not the case that since the Great Decoupling, the wealthiest 1 percent of people globally has captured twice as much of the new wealth generated by economic growth as the rest of us. The richest 10 percent of people on earth now own an estimated 85 percent of all global assets, and the richest 1 percent own 45 percent of all global assets.

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