“Wealth and Poverty” Class 3: Globalization, technological change, and you

October 6, 2026 - 01:42

The debate over widening inequality has returned to the center of economic discussion, with globalization and technological change facing new scrutiny. For decades, policymakers treated both forces as inevitable developments that improved efficiency and should remain outside political control. That assumption is now being challenged.

Government decisions shape how quickly economies globalize and which technologies reach the market. Trade agreements such as NAFTA and China's entry into the World Trade Organization were presented as necessary steps for a modern economy. New tools like artificial intelligence and facial recognition software have followed a similar path, often treated as beyond debate.

But the pace and direction of these changes are choices, not natural laws. Officials determine which industries face global competition, how new technologies are introduced, and what support exists for workers who bear the costs. This process is known as industrial policy.

The effects on employment have been significant. Higher-paying routine production jobs have declined, replaced by lower-wage personal service work. High-paying symbolic analytic positions typically require college degrees, leaving many workers behind. Job stability has weakened across the board, even before artificial intelligence fully enters the workforce.

These trends raise difficult questions about politics, job categories, and proposals such as a universal minimum income. Understanding how globalization and technology widen inequality is the first step toward addressing it.