1. NEW WORLD ORDER Labor, CAPITAL and ideas in the power law economy
Antti Kauppila, Tommi Vallas, Jesse Karjalainen

2. Structure Summary Criticism Key message Reasons behind Implications
Proposed solution
Criticism

3. Key message

4. Scarcity of inputs - Present
Future
DEVELOPING COUNTRIES
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING COUNTRIES
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES

5. Power Law Economy

6. Reasons behind
Technology
Automation
Digitalization 1 2 3

7. Implications ‘’The second machine age’’
Technology has sped globalization One large market for labor, capital and other inputs
‘’The second machine age’’
Where is this all going to lead?

8. The solutions Adjust and adapt
Educated work force and an entrepreneurial culture
Public investments in high-quality basic services

9. Critique Lack of empirical evidence
The access to cheap labor will continue to matter
Not everything is economically viable to automate
High production amount
Automation ?
Cheap labor
High product variety

10. Critique
Why would the second machine age be different from the first one?
Although structural changes tend to wipe old jobs away, they to tend to create new ones in return
Digital capital is not always accessible for “next to zero cost” replication
Ideas are not everything
Skilled labor and capital is needed for execution